Liaoning Kelong Fine Chemical,Inc. signed an equity transfer agreement to acquire 51% stake in Gainsil Semiconductor Technology Co., Ltd. from a group of shareholders for CNY 49.4 million.
February 08, 2021
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Liaoning Kelong Fine Chemical,Inc. (SZSE:300405) signed an equity transfer agreement to acquire 51% stake in Gainsil Semiconductor Technology (Shanghai) Co., Ltd. from a group of shareholders for CNY 49.4 million on February 8, 2021. As reported, Zhang Zhicai and Jiang Yujun will sell 10% stake each for CNY 10 million, Shanghai Yurong Electronic Technology Service Department will sell 11% stake for CNY 11 million, Shenzhen Huaqiu Electronics Co., Ltd. and Shenzhen Jialichuang Investment Co., Ltd. will sell 5% stake each for CNY 5 million, Wang Qiaoyan will sell 8% stake for CNY 6.4 million and Shanghai Chansheng Semiconductor Technology Co., Ltd. will sell 2% stake for CNY 2 million. Following the transfer, Zhang Zhicai, Shanghai Yurong,Jiang Yujun, Shenzhen Huaqiu, Shenzhen Jialichuang, Shanghai Chansheng will hold 17.54%, 11.1%, 8.36%, 5%, 5% and 2% stake in Gainsil Semiconductor Technology respectively while Wang Qiaoyan will not hold any stake.
As at June 30, 2020, Gainsil Semiconductor Technology reported total assets of CNY 31.7 million and Owners’ Equity of CNY 23.6 million. For the year ended December 31, 2019, Gainsil Semiconductor Technology reported revenue of CNY 9.6 million, operational profit of CNY 1.4 million and net profit of CNY 1.7 million.
The agreement is subject to approval of Liaoning Kelong Fine Chemical's shareholders meeting before it can take effect. The transaction was agreed at the twelfth meeting of the fourth Board of Directors and the ninth meeting of the fourth Board of supervisors of Liaoning Kelong Fine Chemical,Inc. on February 8, 2021. Within 15 days after the equity transfer agreement is approved by the company’s general meeting of shareholders, the sellers will assist in preparing all the information and go through the equity change registration procedures with the industrial and commercial administration department. As of April 2, 2021, the transaction was approved by the Board of Directors of Liaoning Kelong Fine Chemical.
LIAONING KELONG FINE CHEMICAL,INC. is a China-based company principally engaged in the research, development, production and application of ethylene oxide derivative deep processing technology. The Company's main products include polyether monomers; polycarboxylate based superplasticizers, such as polycarboxylate superplasticizers and polycarboxylic acid pumps; silicon cutting fluids and other ethylene oxide derivatives. The Company distributes its products primarily in domestic market.
Liaoning Kelong Fine Chemical,Inc. signed an equity transfer agreement to acquire 51% stake in Gainsil Semiconductor Technology Co., Ltd. from a group of shareholders for CNY 49.4 million.