According to the Zhitong Finance App, China's Shuta (08623) announced that on July 7, 2023, the company's wholly-owned subsidiary Shuta Enterprise Management (Guangyuan) Co., Ltd. plans to acquire 30% of the shares of Ya'an Baosheng Metal Materials Co., Ltd. from Qing Chunlin (without any property rights burden) at a total cost of RMB 4.2 million.
Prior to the acquisition, the target company was 70% owned by the group and was a subsidiary of the company, and its financial results were incorporated into the group's financial results. Sales equity refers to 30% of the issued share capital of the target company, so after completion, the target company will become an indirect wholly-owned subsidiary of the company.
According to reports, the target company's main business involves rolling aluminum coil processing and aluminum foil and aluminum sheet manufacturing. Its products mainly include aluminum coils, pre-rolled coatings, diamond sheets, pre-coated photosensitive alloy sheets, and thick foil coils.
The company was informed by the seller that it intended to sell the equity interest in the sale of shares. To ensure that the equity interest in the sale of equity is not sold to a third party, the group sees this as a good opportunity to merge the ownership of the target company at a price equal to the sale of the equity interest. Since the Group already owns 70% of the shares in the target company, the board believes that the acquisition allows the Group to enhance the competitiveness of the target company by providing more resources and support, with a view to improving the overall profitability of the target company and group.