Gelonghui November 28丨Linyang Energy (601222.SH) announced that the company and its subsidiaries, Jiangsu Linyang New Energy Technology Co., Ltd., Pizhou Chengyang Electric Power Technology Co., Ltd., Hebei Linyang Microgrid New Energy Technology Co., Ltd., Liaoning Linyang New Energy Technology Co., Ltd. and Shenyang Linyang New Energy Technology Co., Ltd. plan to sign a project merger and acquisition framework agreement with Shanghai Xirong New Energy Co., Ltd. to transfer 100% of the shares held by 18 wholly-owned subsidiaries to Xirong New Energy. The total share transfer consideration is 118.28205 million yuan. The first batch of “Equity Transfer Agreements” for the 10 target companies in this framework agreement is to be signed together when the framework agreement is signed. The total transfer consideration is 35,58433 million yuan.
Based on business development and strategic planning, in order to further optimize the power plant asset structure, reduce renewable energy subsidies in accounts receivable, improve capital utilization efficiency, and strengthen partnerships with partners, the company plans to transfer 100% of the shares of 18 subsidiary companies. The transaction involves some companies' first non-public stock offering, second non-public stock offering, and public issuance of convertible bonds to raise capital projects. This equity transfer transaction is conducive to revitalizing existing assets, reducing the balance ratio, and continuously optimizing assets. The transaction has not harmed the interests of the company and other shareholders, will not have a significant adverse impact on the company's future financial situation and operating results, and is in line with the company's overall development strategy and the interests of all shareholders.