Sinomag Technology Co., Ltd. (SZSE:300835) agree to acquire 41.4% stake in EnverTech (Shanghai) Co., Ltd from group of shareholders for CNY 120 million on December 11, 2022. Under the terms of consideration, Sinomag will acquire 2.25 million shares of Enver at the equity transfer price to be paid was CNY 53.1667 per share. Sinomag Technology will use its own or self-raised funds of CNY 120 million to fund the transaction. In related transaction, Sinomag Technology Co., Ltd. (SZSE:300835) entered into a capital increase agreement with EnverTech (Shanghai) Co., Ltd on December 11, 2022. Post completion of Equity Transfer and Capital Increase, Sinomag Technology will hold 51.4% stake in EnverTech and will become the company's holding subsidiary. As of September 30, 2022, EnverTech had total asset and Owner's Equity as CNY 53.2 million and CNY 9.03 million respectively. The board of directors of Sinomag Technology reviewed and approved the transaction on December 11, 2022. The company's board of directors has conducted necessary due diligence on the basic situation of the counterparty. Transaction does not need to be submitted to the company's shareholders' meeting for review and approval.
The Sinomag Technology Co., Ltd has paid 50% of the equity transfer payment.