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VS International to offload plastic moulded products unit
Posted on Monday, 13 November 2017 10:36
VS International is selling 90.0 per cent of Qingdao GS Electronics Plastic via a cash deal worth CNY 77.00 million (USD 11.59 million).
Zhejiang Three Stars New Materials and Deqing Chen De Industrial will acquire 40.0 per cent and 50.0 per cent, respectively, of the target, which is currently wholly-owned by the vendor’s VS Industry Holding unit.
The deal, which remains subject to VS International’s shareholders, will be terminated if the relevant conditions are not met by 31st January 2018.
Auditor Pan-China CPAs and property valuer Canwin Assets Appraisal have been appointed by Qingdao GS Electronics to facilitate the transaction.
In addition, VS International has agreed to grant an option to Deqing Chen De for the purchase of the remaining 10.0 per cent stake in the target for about CNY 855,000.
Qingdao GS Electronics is a plastic moulded products and parts maker based in Zhuhai, China.
The firm posted net profit after tax of CNY 2.83 million in the 12 months ended 31st July 2017, up 15.5 per cent on the CNY 2.45 million recorded during the same timeframe in the previous year.
It had unaudited net assets worth about CNY 82.43 million as of 30th September 2017.
Listed on the Hong Kong Stock Exchange, VS International specialises in mould design and fabrication, as well as the production of plastic moulded parts and electronic assemblies.
Besides Zhuhai, the group also operates a manufacturing facility in Hanoi, Vietnam.
By selling its original design manufacturing unit, VS International is aiming to free up resources to focus on developing higher value-added products.
According to Zephyr, the M&A database published by Bureau van Dijk, there have been 115 deals targeting Chinese plastics product makers announced since the beginning of this year.
© Zephus Ltd