Zhejiang Hengtong Holding Co.,Ltd. (SHSE:600226) signed a letter of intent to acquire an additional 49% stake in Hengtong Precision Copper Foil Technology (Deyang) Co., Ltd. from Jiangsu Hengtong Precision Copper Co., Ltd for approximately CNY 290 million on July 12, 2024. A cash consideration of CNY 292.96 million will be paid by Zhejiang Hengtong Holding Co.,Ltd. As part of consideration, CNY 292.96 million is paid towards common equity of Hengtong Precision Copper Foil Technology (Deyang) Co., Ltd. Upon completion, Zhejiang Hengtong Holding Co.,Ltd. will own 100% stake in Hengtong Precision Copper Foil Technology (Deyang) Co., Ltd. The transaction will be financed through own funds.

As of March 31, 2024, Hengtong Precision Copper Foil Technology (Deyang) Co., Ltd. reported total assets of CNY 1.21 billion and total common equity of CNY 451.68 million.

The transaction is subject to approval of offer by acquirer shareholders and approval of offer by acquirer board. The deal has been approved by the board.