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East Group to purchase Jiangbei
Posted on Monday, 13 November 2017 10:34
East Group is acquiring Ningbo Jiangbei Yize New Energy Technology in an all-cash deal worth CNY 2.90 billion (USD 436.15 million).

The target is currently held by Wang Zhaofeng, Yang Yongzhi, Zhao Xuewen and Shanghai Chaoxi Investment Management, all of which are divesting their entire stakes.

Closing remains subject to the approval from East Group’s shareholders.

Jiangbei is engaged in the development and manufacturing of photovoltaic cells used in solar powered equipment.

Shenzhen Stock Exchange-listed East Group manufactures solar inverters, uninterrupted power supplies, electric vehicle charging stations and stabilisers, among other power devices.

Founded in 1989, the purchaser operates 268 representative offices in China and is also active in at least 140 other countries.

The deal will allow the buyer to further expand into smart energy, particularly in areas including photovoltaic power generation, and the development of energy storage and microgrid technologies.

East Group has also recently constructed new photovoltaic power plants to capitalise on China’s growing demand for renewable energy.

As a result of its expansion efforts, the group posted revenue of CNY 3.45 billion in the six months ended 30th June 2017, up 50.7 per cent on the CNY 2.29 billion recorded during the same timeframe in the previous year.

Net profit for the period totalled CNY 317.45 million, compared to CNY 153.86 million in H1 2016.

East Group’s other transactions so far this year include its CNY 300.11 million capital injection into cloud computing services provider Shanghai Guofu Guangqi and its CNY 23.32 million investment in software developer Ganzhou Create Software.

According to Zephyr, the M&A database published by Bureau van Dijk, there have been 209 announced deals targeting manufacturers of semiconductor and related devices in China since the beginning of this year.

© Zephus Ltd