Following two consecutive trading sessions where its share price hit the daily upper limit, Shanghai Vital Deeptech Co., Ltd. (ASX: 600641) announced on the evening of July 1 its plan to acquire a controlling stake in a related company through a capital increase.
The company disclosed it is planning to invest in Guangdong Vital Microelectronics Technology Co., Ltd. (Vital Microelectronics) via a capital injection to gain a controlling interest. According to the announcement, Vital Deeptech intends to sign an investment agreement with Qingyuan Vital Advanced Materials Co., Ltd. and Vital Microelectronics, stipulating that the listed company will invest in Vital Microelectronics to obtain more than 50% of its equity, thereby securing a controlling stake.
The target of this capital increase and the listed company share the same ultimate controlling shareholder, Zhu Shihui, making this transaction a connected party transaction. However, it is not expected to constitute a significant asset restructuring.
Established in September 2020, Vital Microelectronics primarily operates in the electronic materials business. Vital Deeptech stated that the proposed acquisition aims to integrate this business segment, aiming to further enhance the company's overall profitability.
On the same evening, Vital Deeptech also issued an announcement regarding abnormal stock price fluctuations and associated risks. The notice revealed that the company's stock price had deviated by a cumulative value exceeding 20% over two consecutive trading days (June 30 and July 1), meeting the criteria for abnormal trading activity.
In the secondary market, between April 3 and July 1, spanning 59 trading days, Vital Deeptech's share price surged by a remarkable 146.21%. The stock closed at its daily limit-up price of 43.85 yuan per share on July 1, bringing the company's total market capitalization to 41.52 billion yuan.
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