Ferrorecholding <6890> announced that at the board of directors meeting held on November 25, the subsidiary Anhui Fulede Technology Development (referred to as FTSVA) agreed and approved the purchase contract of shares of Jiangsu Fulehua Semiconductor Technology (referred to as FLH), a subsidiary manufacturing insulated heat dissipation substrates for power semiconductors, through the issuance of stocks and convertible bonds with FLH shareholders.
This announcement serves as a follow-up to the disclosure dated October 16, 2024, titled 'Notice regarding the start of discussions by the company's Chinese component cleaning business subsidiary to acquire shares of a power semiconductor substrate manufacturing subsidiary.'
The decisions made include: (1) FTSVA will proceed with the transaction under the premise of approval from the company's shareholders' meeting, approval by the Shenzhen Stock Exchange, and registration approval from the China Securities Regulatory Commission, with the consent of Ferrotech Holdings and Shanghai Shenhe Investment (referred to as FTS), the direct shareholders of Ferrorecholding and FTSVA. (2) FTS agrees to FTSVA conducting the public offering within a fundraising amount not exceeding 782.5938 million yuan (approximately 16.8 billion yen) and other conditions. (3) FTS, as the shareholder of FLH, approves the agreement to transfer FLH shares via stock exchange with FTSVA. (4) FTS, upon transferring FLH shares, approves the conclusion of a profit compensation agreement with FTSVA.
