Wanxiang Qianchao (000559.SZ) announced that the company plans to purchase Wanxiang by issuing shares and paying in cash...
According to Zhitong Finance App, Wanxiang Qianchao (000559.SZ) announced that the company plans to purchase 100% of Wanxiang America Corp., (“WAC”) shares held by Wanxiang in the US and raise supporting capital by issuing shares to no more than 35 specific investors.
The company plans to issue shares to no more than 35 specific investors to raise supporting capital. The total amount of supporting capital raised shall not exceed 100% of the transaction price of the assets to be purchased by issuing shares, and the amount of supporting capital to issue shares shall not exceed 30% of the total share capital of the listed company before this transaction.
The supporting funds raised in this transaction are intended to be used to pay the cash consideration of this transaction, project construction of the target company, supplement the working capital or repayment of debts of the listed company and/or the target company, after deducting expenses related to the issuance. Among them, the proportion of supplementary working capital and debt repayment shall not exceed 25% of the consideration of this transaction or 50% of the total supporting capital raised.
According to the announcement, the target company is mainly dedicated to R&D, production and sales of high-end automobile transmission systems and steering systems, and is a core component supplier for major global automakers.
The company said that through this transaction, the listed company will further enhance the breadth and depth of the global business layout, significantly improve the responsiveness and reliability of the company's supply chains in Asia, Europe and America, better integrate into the supply chain systems of major global OEMs and further increase the global market share, making the company a leading enterprise in the global auto parts industry and become an international listed company based on domestic A-shares in the true sense of the word.