Siwei Technology (01202) announced that on January 3, 2024, the company was notified by the 29th Research Institute of China Electronics Technology Group Corporation, the company's indirect controlling shareholder, that China Electronics Technology Group Co., Ltd., the actual controlling shareholder of the company, agreed to the proposed restructuring proposal on December 29, 2023. According to this, Chengdu Siwei Electronics Co., Ltd. should transfer 34% of the company's shares to Chengdu Siwei Hi-Tech Industrial Park Co., Ltd., an indirect wholly-owned subsidiary of China Electronics Technology.
According to Rule 26.1 of the Code of Corporate Acquisitions, Mergers and Share Repurchases, Chengdu Siwei Hi-Tech's acquisition voting rights due to the proposed restructuring will trigger the obligation of Chengdu Siwei Hi-Tech and its co-actors to make mandatory comprehensive offers for all issued shares of the company that have not yet owned or agreed to be acquired, unless exempted from strict compliance with Rule 26 of the Takeovers Code by the Executive Director of the Corporate Finance Department of the Hong Kong Securities and Futures Commission or any representative thereof. Therefore, on January 8, 2024, the company applied to the executive for exemption from the obligation to make a mandatory comprehensive offer in accordance with Rule 26.1, remark 6 of the Takeovers Code.
As of the date of this announcement, Chengdu Siwei Electronics is still the controlling shareholder of the company.