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Haida to purchase majority stake in Keno
Posted on Monday, 19 June 2017 10:12
Jiangyin Haida Rubber and Plastic is acquiring 95.3 per cent of Ningbo Keno Aluminium (Keno) for CNY 329.35 million (USD 48.33 million) to further expand into the auto parts manufacturing sector.
According to Zephyr, the M&A database published by Bureau van Dijk, this is the purchaser’s largest deal since its CNY 330.07 million initial public offering on the Shenzhen Stock Exchange in 2012.
Keno is paying in cash and giving the 37 selling shareholders, including Suzhou Zizhu and Baoying Fund, 4.4 per cent of its enlarged capital.
Traded on the National Equities Exchange and Quotations (NEEQ), Keno manufactures aluminium auto parts, such as booster pumps, expansion valves and shock absorbers, and supplies to some of the world’s best-known car makers like Audi and BMW.
It is also a producer of office equipment components, which include heating and magnetic rollers.
At the same time, Haida is inviting no more than five investors to subscribe for a capital increase worth around CNY 222.00 million, representing 4.1 per cent of its enlarged capital.
Keno will be delisted from the NEEQ following the acquisition, which remains subject to approvals from shareholders and the China Securities Regulatory Commission.
The announcement comes just days after the buyer took over foam plastic manufacturing machinery producer Jiangyin Tsinghua for CNY 10.00 million.
Haida mainly provides rubbers and plastic parts for equipment used in the rail transportation, construction, automobile manufacturing and shipping industries.
It posted revenue of CNY 855.75 million in the 12 months ended 31st December 2016, up 3.3 per cent on the CNY 828.79 million recorded in the previous year.
Net profit for the period increased 26.2 per cent to CNY 82.98 million from CNY 65.76 million in 2015.
© Zephus Ltd