Jiangsu Zhongshe Group Co., Ltd. cancelled the acquisition of China Construction Design International Co., Ltd. from a group of shareholders.
September 22, 2021
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Jiangsu Zhongshe Group Co., Ltd. (SZSE:002883) signed a preliminary plan to acquire China Construction Design International Co., Ltd from a group of shareholders on September 8, 2020. Jiangsu Zhongshe Group Co., Ltd. signed an agreement to acquire China Construction Design International Co., Ltd from a group of shareholders for CNY 3.4 billion on February 10, 2021. As reported, Jiangsu Zhongshe Group Co. will issue 174.1 million shares and pay cash of CNY 297.5 million as consideration. Jiangsu Zhongshe Group Co. will raise supporting funds of not more than CNY 147.4 million to fund the cash portion of consideration. For the financial period December 31, 2019, China Construction Design International reported total revenue CNY 3 billion, total asset of CNY 4 billion, net income of CNY 361.4 million and total common equity of CNY 2.6 billion. The transaction is subject to Jiangsu Zhongshe Group Co., Ltd shareholders’ approval, CSRC approval and Jiangsu Zhongshe Group Co., Ltd Board approval. On September 8, 2020, the 19th session of Jiangsu Zhongshe Group’s 2nd Directorate approved the acquisition. After the completion of the audit and appraisal works, Jiangsu Zhongshe Group would need to hold another Directorate to approve the transaction. On February 10, 2021, Jiangsu Zhongshe Group Co. held the 22nd Meeting of the 2nd Directorate and approved the transaction. On June 4, 2021, Jiangsu Zhongshe Group Co., Ltd. submitted the Request for Instructions on the Postponement of Responses to the Application Documents of Jiangsu China Engineering Group Co., Ltd. Major Asset Restructuring Project, and the application was extended to June 30, 2021 for response to complete the audit report.
Sun Jian and Hong Delu of China Merchants Securities Co., Ltd. (SHSE:600999) acted as financial advisors, Du Jiaying and Lin Lin, Chen Jie of Grandall Law Firm acted as legal advisors and Xiao Feng and Wang Kai of PricewaterhouseCoopers Zhongtian Certified Public Accountants (Special General Partnership) acted as accountants to Jiangsu Zhongshe Group Co.
Jiangsu Zhongshe Group Co., Ltd. (SZSE:002883) cancelled the acquisition of China Construction Design International Co., Ltd. from a group of shareholders on September 22, 2021.
Jiangsu Zhongshe Group Co Ltd is a China-based company principally engaged in the provision of engineering and design consulting services related to urban construction and traffic construction. The Company's main businesses include the planning consulting and exploration design, the engineering supervision and project management. The planning consulting services mainly include the strategic planning, regional planning and special planning, integrated transportation planning, landscape tourism planning, project proposals, design consulting and evaluation consulting. The Company mainly operates its businesses in domestic market.