Shantui Construction Machinery Co., Ltd. (SZSE:000680) announced that it has entered into subscription agreement to issue 236,705,601 shares of class A at issue price of CNY 2.88 per share for gross proceeds of CNY 681,712,130.88 on November 26, 2020. The transaction will include participation from new investor Weichai Power Co., Ltd. (SEHK:2338). The investor will hold 16.02% stake in the company post closing of the transaction.

The transaction is subject to approval from the board of directors and shareholders of the company. The transaction is also subject to approval from relevant department of the State-owned Assets Supervision and Administration Commission and China Securities Regulatory Commission. The shares issued in the transaction are subject to a hold period of 36 months from the closing of the transaction.

The amount will be payable by the investor to the company within five working days of the receipt of the relevant payment notice by company.