On May 14, Ge Longhui (600835.SH) announced that it intends to acquire 100% of the shares of Shanghai Jiyou Mingyu Machinery Technology Co., Ltd. (“Shanghai Jiyou”, “Target Company”), which are collectively held by Shanghai Electric Group Co., Ltd. (“Shanghai Electric”), and Shanghai Electric Group Hong Kong Co., Ltd. (“Electric Group Hong Kong”) in cash. The assessed value of 100% of Shanghai Jiyou's shares is RMB 5318.40 million. Ultimately, the valuation value confirmed by the State-owned Assets Administration Department shall prevail.
Shanghai Electric is the controlling shareholder of the company, Electric Hong Kong is a wholly-owned subsidiary of Shanghai Electric, and Electric Group Hong Kong is a wholly-owned subsidiary of Shanghai Electric Holding Group Co., Ltd., the actual controller of the company. According to the “Shanghai Stock Exchange Stock Listing Rules”, this transaction constitutes a related transaction. Shanghai Jiyou is mainly engaged in R&D, production and sales of industrial basic parts and key components such as industrial fasteners, automobile fasteners, tools, blades and bearings, etc., and its various business segments are also deeply involved in various segments.
