Summary by Moomoo AI
On January 23, 2024, Chongqing Electrical and Agricultural Fund and Pneumatic Company signed an equity transfer agreement, agreeing to acquire 35.79% of the shares of Pneumatic Company held by the Agricultural Fund for a transaction amount of RMB6,700 million. Upon completion of this acquisition, Pneumatic Company will become a wholly owned subsidiary of Chongqing Mechanical and Electrical. The transaction constitutes a connected transaction under Chapter 14A of the Listing Rules, but is exempt from independent shareholder approval as the applicable percentage rate is less than 5%. The Board of Directors approved this agreement on 22 December 2023 and considers the terms to be fair and reasonable and in the overall interests of the company and shareholders. Pneumatic Company is primarily engaged in the manufacture and sale of gas compressors and related equipment and recorded stable financial performance in 2021 and 2022. All remittances are expected to be completed by 28 June 2024 for this transaction.