Francois Holdings (02499.HK) announced that the Board of Directors approved the equity transfer agreement on July 18th, 2024, which was reached between the buyer Francois (Hong Kong) Co., Ltd. (the direct wholly-owned subsidiary of the company), the seller Mitsubishi Logisnext Co., Ltd., the target company Li Zhiyou Forklift (Shanghai) Co., Ltd., the company (as the buyer's guarantor), and the seller's guarantor. Accordingly, (i) the seller conditionally agreed to sell and the buyer conditionally agreed to acquire all the equity of the target company at a price of RMB 33.923 million yuan (adjustable); (ii) the company agreed to provide guarantees for the buyer's performance obligations under the equity transfer agreement; and (iii) the seller's guarantor agreed to provide guarantees for the seller's performance obligations under the equity transfer agreement.
Upon completion, the target company will become the indirect wholly-owned subsidiary of the company. The target company is a limited liability company established in China, mainly engaged in the sales, services, and leasing of Li Zhiyou brand high-quality forklifts. As of the date of this announcement, the target company is a wholly-owned subsidiary of the seller.
The Group is a leading provider of on-site logistics equipment solutions in China. With on-site logistics equipment leasing services as the core, the Group aims to provide one-stop solutions for enterprises in the use and management of on-site logistics equipment. The target company is mainly engaged in the sales, services, and leasing of Li Zhiyou brand high-quality forklifts, with a sales and after-sales service network covering all of China. It enjoys a high reputation in the forklift industry, accumulating rich industry experience, knowledge, and extensive customer resources.
Through the acquisition, the Group's asset size will also be rapidly expanded. In addition, considering that the target company has accumulated rich and high-quality high-end customer resources, the breadth and depth of the Group's customer scope and regional coverage will be effectively expanded after completion. As a high-end international forklift brand, the excellent brand effect of Li Zhiyou will help the Group accelerate the synergy of brand resources after completion and further enhance the Group's market share.