KTK Group Co., Ltd. completed the acquisition of remaining 50% stake in Jiangsu KTK Electrical Co., Ltd from Koito Manufacturing Co., Ltd..
August 28, 2020
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KTK Group Co., Ltd. (SHSE:603680) agreed to acquire remaining 50% stake in Changzhou KTC Electrical Co., Ltd from Koito Manufacturing Co., Ltd. (TSE:7276) for approximately CNY 220 million on August 6, 2020. Upon the completed of the transaction, KTK Group Co., Ltd. will hold 100% stake in Changzhou KTC Electrical Co., Ltd. For the financial year December 31, 2019, Changzhou KTC Electrical Co., Ltd reported total asset of CNY 645 million, total common equity of CNY 516 million, total revenue of CNY 386 million and net profit of CNY 75 million. As reported on August 13, 2020, Changzhou KTC Electrical Co., Ltd completed the corresponding industrial and commercial registration procedures for equity change, and obtained the business license issued by Changzhou Wujin District market supervision and Administration Bureau. At present, some procedures have not been completed, KTK Group Co has not paid the purchase price, and the acquisition of equity has not been completed. The transaction is subject to relevant government approval and is approved by the Board of KTK Group Co., Ltd.
KTK Group Co., Ltd. (SHSE:603680) completed the acquisition of remaining 50% stake in Jiangsu KTK Electrical Co., Ltd from Koito Manufacturing Co., Ltd. (TSE:7276) on August 28, 2020. KTK Group used raised funds of CNY 221.5 million to pay purchase price and Changzhou KTC Electrical became 100% holding subsidary.
KTK Group Co., Ltd. is a China-based company, which manufactures the products for railway transportation. The Companyâs products are mainly divided into rail transport vehicles interior products and equipment products. The Company's interior products mainly include roof, wall, floor, wall panels, luggage racks, handrails composition, air duct and other products. The Company's internal products in the domestic market has been applied to CRH series of Electric Motor Train Unit (EMU) vehicles as well as Beijing, Shanghai, Guangzhou, Shenzhen and other cities in the city rail vehicles. Products in the international market has been applied to the United Kingdom, France, Italy, Belgium, Singapore, India and other countries of the rail traffic vehicle projects. The Company's equipment products include EMU vehicle side door mechanism, kitchen system, seat and box series.