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Jinguan to purchase Hongtu
Posted on Friday, 16 June 2017 07:47
Jilin Jinguan Electric is buying Liaoyuan Hongtu Lithium-ion Battery Separator Technology (Hongtu) for around CNY 1.48 billion (USD 216.65 million).
As shown by Zephyr, the M&A database published by Bureau van Dijk, this is the purchaser’s second acquisition so far since its CNY 268.14 million initial public offering on the Shenzhen SME Board last May.
The buyer is paying CNY 414.50 million in cash and issuing CNY 1.06 billion-worth of shares to the 13 selling shareholders, which include venture capitalists Guangzhou Yibo New-Energy-Industry Investment Management and CAS Investment Management.
Founded in 2005, Hongtu is engaged in the manufacturing of high-end lithium battery separators, which Jinguan sees as complimentary to its switchgear production business.
The target, a permanent supplier of Panasonic and South Korean Rocket, also sells to countries like South Africa, Colombia, Brazil and Malaysia.
Hongtu has been collaborating with the China Battery Industry Association, Changchun Applied Chemical Institute, as well as the Jilin and Northeast Normal universities, since 2007 and continues to place an emphasis on research and development to enhance its products.
The transaction comes as the buyer is aiming to tap into the new energy sector for its next phase of growth.
Jinguan is concurrently raising around CNY 720.00 million from no more than five investors via a private placing which represents 7.9 per cent of its enlarged capital.
Closing of the two transactions is subject to approvals from shareholders and the China Securities Regulatory Commission.
In another expansion effort last month, Jinguan successfully acquired electric car charging equipment maker Nanjing Nengrui for CNY 1.50 billion.
The purchaser posted revenue of CNY 378.23 million in the 12 months ended 31st December 2016, up 44.4 per cent on the CNY 261.96 million in the previous year.
Net profit for the period totalled CNY 56.37 million, compared to CNY 50.05 million in 2015.
© Zephus Ltd