Gelonghui November 20 | Capital Environment (03989.HK) announced that on November 20, 2023, the buyer (an indirect wholly-owned subsidiary of the company) entered into a sales agreement on the acquisition. According to the sales agreement, the seller has agreed to sell at cost and the buyer has agreed to buy the rights for sale at cost, which is equivalent to about 37.91% of the remaining shares of the target company Duyun Shouchuang Environmental Protection Co., Ltd. The cost is RMB 52 million.
The target company is a limited company established in China, which is mainly engaged in waste treatment and waste-to-energy power generation business. Upon completion, the target company will become an indirect wholly owned subsidiary of the company.
Since the target company will become an indirect wholly-owned subsidiary of the company after completion, the company believes that the acquisition will help the company more effectively implement business strategies and business expansion plans related to the target company's business. Furthermore, the acquisition will enable the Group to reduce trade receivables in a timely manner and ensure the normal production and operation of target companies.