Shanghai Electric (02727) announced that on May 13, 2024, the board of directors of the company deliberated and passed the “Proposal on Transfer of 95.5585% of the total shares of Shanghai Jiyou Mingyu Machinery Technology Co., Ltd. held by Shanghai Electric Group Co., Ltd., and Shanghai Electric Hong Kong Co., Ltd. to transfer 95.5585% of the total shares held by the company and the company's wholly-owned subsidiary Electric Hong Kong to Shanghai Electromechanical Co., Ltd. 95.5585% of the shares held in Shanghai Jiyou.
In response to policy requirements to encourage listed companies to focus on their main business and comprehensively use mergers, acquisitions and 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 strategies, seeking steady progress, key breakthroughs, and achieving high-quality development”, and actively support subordinate enterprises to deeply cultivate “specialized, innovative” industries, Shanghai Electromechanical plans to acquire 87.6736% and 7.8849% of Shanghai Jiyu Group Hong Kong Co., Ltd. (hereinafter referred to as “Electric Group Hong Kong”) and 4.4415% equity.
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.