On November 5th, Gelonhui reported that tianjin teda (000652.SZ) announced plans to implement a new round of market-oriented debt-for-equity swaps for tianjin teda eco-friendly concept to continuously optimize the capital structure of the company's eco-friendly sector. Tianjin teda eco-friendly concept plans to introduce investor Galaxy Asset Management to carry out market-oriented debt-for-equity swaps, with Galaxy Asset Management planning to subscribe to tianjin teda eco-friendly concept's newly increased registered capital of 153.207573 million yuan (subject to industrial and commercial registration) by investing 400 million yuan in cash. The planned investment period is 36 months, and the additional capital will be used to repay debts of qualified financial institutions within tianjin teda eco-friendly concept's consolidated financial statements (mainly debts formed by bank loans).
After this capital increase, the company's proportion of shares held in tianjin teda eco-friendly concept is 59.3441%, remaining the controlling shareholder of tianjin teda eco-friendly concept. China CITIC Financial Asset Management Co., Ltd. (hereinafter referred to as CITIC Financial Assets) holds a 30.4671% stake in tianjin teda eco-friendly concept, Galaxy Asset Management holds a 10.1557% stake, and Tianjin Environmental Sanitation Engineering Design Institute Co., Ltd. (hereinafter referred to as Tianjin Environmental Sanitation Institute) holds a 0.0331% stake in tianjin teda eco-friendly concept.
At the same time, the company's controlling shareholder, Tianjin Taida Investment Holding Co., Ltd. (hereinafter referred to as Taida Holding), and the company undertake the performance compensation (i.e., bonus supplement) obligation. That is, in any financial year when Galaxy Asset Management actually receives dividends from tianjin teda eco-friendly concept less than the amount calculated based on an annualized 6.5% return on Galaxy Asset Management's investment principal, taida holding, and the company unconditionally supplement dividends by 75% of the amount that Galaxy Asset Management has not received. If the conditions for the forward acquisition are triggered, taida holding, the company, or their designated third party should pay the equity transfer price and acquire the shares of tianjin teda eco-friendly concept held by Galaxy Asset Management.
