Fujian Motor Becomes the Dominant Shareholder of King Long
04 July 2014
www.chinabuses.org: Xiamen King Long announced on 25th June that 20.7% equity, held by the main shareholder CCRE Group and its subsidiaries, would be transferred to Fujian Motor Industry Group for free according to the requirement of the strategic development of Fujian Automobile Industry. After the transfer, Fujian Motor Industry Group, holding 34.22% of Xiamen King Long’s stocks, will replace CCRE Group to become the dominant shareholder, and Fujian State-owned Assets Supervision and Administration Commission (hereafter referred to as “SASAC”) will become the real controller.
The plan has been approved in the meeting of CCRE Group creditor on 13th June. The transfer will be concluded only if it is approved by the SASAC and CSRC (China Securities Regulatory Commission). An additional stock of no more than 1.3 billion yuan is to be issued.
On the same day Xiamen King Long released the plan for non-public offering A share market stock (revised) in 2014. A non-public offering stock of no more than 164,141,414 priced at 7.92 yuan / stock will be issued to five subjects including Fujian Motor Industry Group, Fujian Investment & Development Group, Fujian Provincial Communication Transportation Group, Ping An Assets Management Company, Fujian Energy Group.
The total value of this non-public offering stock will be no more than 1.3 billion yuan. After expenses deduction, the rest will be used to purchase the CCRE Group whole stock of Chuangcheng Environment Protection, acquire the industrialization project of key spare parts of high efficient and new energy buses, supplement the circulating funds. By adjusting the equity structure inside the company, integrating the present resources and strengthening coordination, it aims at raising competitive power. Meanwhile, by enhancing financial resources and improving capital structure, it targets at a sound development.
After consultations with CCRE Group, the price for the deal that Xiamen King Long acquires the whole equity of Chuangcheng Environment Protection is eventually set at 0.89 billion yuan.
Source : www.chinabuses.org
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