Shanghai Electric (02727) issued an announcement. On May 13, 2024, the board of directors reviewed and passed the relevant bill...
Zhitong Finance App News, Shanghai Electric (02727) issued an announcement. On May 13, 2024, the board of directors reviewed and passed the relevant bill, agreeing that Shanghai Electromechanical, a non-wholly-owned subsidiary of the company, would acquire 4.4415% of Shanghai Jiyou's shares held by Electric Group Hong Kong in cash. The total cost was approximately RMB 236 million, based on the assessed value of the total equity value of Shanghai Jiyou's shareholders of RMB 5.318 billion. The purchase price is based on the final equity valuation results of the state-owned assets filing. After the acquisition is completed, Shanghai Electromechanical will hold 100% of Shanghai Jiyou's shares.
According to the announcement, in response to policy requirements that encourage listed companies to focus on their main business and comprehensively use mergers, acquisitions, restructuring, equity incentives, etc. to improve the quality of development, and further promote the company's strategic layout and industrial integration in key industries around the company's development strategy of “focusing on national strategy, seeking steady progress, key breakthroughs, and achieving high-quality development”, and actively support subordinate enterprises to further cultivate “specialized and new” industries, Shanghai Electromechanical plans to acquire 87.6736%, 7.8849% and 4.4415% of Shanghai Jiyou shares held by Shanghai Electric Hong Kong Co., Ltd., and Electric Group Hong Kong, respectively. Shanghai Electromechanical's acquisition of 4.4415% of Shanghai Jiyou's shares from Electric Group Hong Kong constituted a connected transaction in the company.
Through this transaction, Electric Group Hong Kong will no longer hold shares in Shanghai Jiyou. Shanghai Jiyou is still a holding subsidiary within the scope of the company's consolidated statement, and Shanghai Electromechanical will directly hold 100% of Shanghai Jiyou's shares. The transaction did not have a significant impact on the company's production and operation.
After the completion of the aforementioned transaction, the company's industrial equipment sector business will be effectively integrated. Shanghai Mechatronics will also clarify its “specialized, special and new” industrial platform position, broaden the scope of industrial basic parts, key components, subsystems, and mechatronic products, build and improve the diversification of the product portfolio, and further develop the dominant position of Shanghai Mechatronics and Shanghai Jiyu in the field of industrial basic parts and key components to serve the country's manufacturing power strategy.