Jiangxi Hongcheng Environment Co.,Ltd. cancelled the acquisition of Anyi County Water Supply Co., Ltd. and Jiangxi Lantian Blue Water Environmental Protection Engineering Co., Ltd. from Nanchang Water Industry Group Co., Ltd.
August 11, 2021
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Jiangxi Hongcheng Waterworks Co., Ltd. (SHSE:600461) signed an Framework Agreement for the Purchase of Assets to acquire Anyi County Water Supply Co., Ltd. and Jiangxi Dingyuan Ecological Environmental Protection Co., Ltd. and Jiangxi Lantian Blue Water Environmental Protection Engineering Co., Ltd. from Nanchang Water Industry Group Co., Ltd. on January 29, 2021. Post completion, Jiangxi Dingyuan Ecological and Jiangxi Lantian Blue Water and Anyi County Water Supply will operate as wholly owned subsidiaries. Jiangxi Hongcheng Waterworks intends to raise supporting funds through non-public issuance of shares to no more than 35 eligible specific objects including Nanchang Water Industry Group Co., Ltd. or its related parties, and the total amount of supporting funds raised shall not exceed 100% of the transaction price of the proposed transaction. On January 29, 2021, eighteenth extraordinary meeting of the seventh directorate of Jiangxi Hongcheng reviewed and approved the proposals related to the transaction plan. Board of Directors of Jiangxi Hongcheng still needs to review and approve the specific plan for this reorganization. Transaction is subject to Municipal holdings, Nanchang SASAC, the actual controller and shareholders of Jiangxi Hongcheng. Transaction is also subject to approval from China Securities Regulatory Commission. For the period ended October 31, 2020, Jiangxi Dingyuan reported Total assets of CNY 3.17484 billion, Net assets of CNY 955.43 million, revenue of CNY 449.66 million and Net profit of CNY 75.23 million. For the period ended October 31, 2020, Jiangxi Lantian reported Total assets of CNY 499.24 million, Net assets of CNY 253.26 million, revenue of CNY 61.17 million and Net profit of CNY 13.14 million. For the period ended October 31, 2020, Anyi County reported Total assets of CNY 146.89 million, Net assets of CNY 62.68 million, revenue of CNY 27.54 million and Net profit of CNY 9.02 million. For the year ended December 31, 2019, Jiangxi Dingyuan reported Total assets of CNY 2.67561 billion, Net assets of CNY 680.15 million, revenue of CNY 365.42 million and Net profit of CNY 46.71 million. For the year ended December 31, 2019, Jiangxi Lantian reported Total assets of CNY 469.34 million, Net assets of CNY 40.13 million, revenue of CNY 62.82 million and Net profit of CNY 5.05 million. For the year ended December 31, 2019, Anyi County reported Total assets of CNY 137.48 million, Net assets of CNY 53.60 million, revenue of CNY 29.91 million and Net profit of CNY 7.90 million.
Jiangxi Hongcheng Environment Co.,Ltd. (SHSE:600461) Completed the acquisition of Jiangxi Dingyuan Ecological Environmental Protection Co., Ltd. from Nanchang Water Industry Group Co., Ltd. for CNY 944.1 million on August 11, 2021. Jiangxi Hongcheng Environment Co.,Ltd. cancelled the acquisition of Anyi County Water Supply Co., Ltd and Jiangxi Lantian Blue Water Environmental Protection Engineering Co., Ltd. from Nanchang Water Industry Group Co., Ltd. on August 11, 2021. The stock issue price of this issuance of shares is 6.66 yuan per share. Jiangxi Hongcheng Environment Co.,Ltd. will issue 86,471,621 shares to the counterparty to purchase 61.00% of the shares in Dingyuan Ecological, and pay the counterparty CNY 368.199 million in cash to purchase the Dingyuan Ecological´s 39.00% equity. Jiangxi Hongcheng Environment Co.,Ltd. also intends to raise supporting funds for non-public offering of shares to no more than 35 qualified subscribers. The total amount of supporting funds raised shall not exceed CNY 368.199 million, which shall not exceed 100% of the transaction price of the assets to be purchased.
Jiangxi Hongcheng Environment Co Ltd is a China-based company principally engaged in water supply business and sewage treatment business. The Company operates six segments. Tap Water Production and Sales segment is mainly engaged in the production and supply of water. Sewage Treatment Services segment includes urban domestic sewage treatment and industrial wastewater treatment business. Gas New Energy segment includes gas sales, gas engineering installation and photovoltaic power generation business. Solid Waste Treatment Services segment includes industrial solid waste disposal and power generation and heating, urban food waste treatment, and the disposal of urban garbage leachate and concentrate business. Water Supply and Drainage Pipeline and Sewage Environment Engineering segment is mainly engaged in the construction and renovation of urban water supply pipeline networks, water plants, and sewage treatment plants. Other segment businesses include equipment sales and other business.
Jiangxi Hongcheng Environment Co.,Ltd. cancelled the acquisition of Anyi County Water Supply Co., Ltd. and Jiangxi Lantian Blue Water Environmental Protection Engineering Co., Ltd. from Nanchang Water Industry Group Co., Ltd.