First Tractor Company Limited (First Tractor) has formally requested BOL Financial Leasing Co., Ltd. to repurchase the 6.88% equity interest it holds after voting against BOL Financial Leasing’s proposed merger by absorption into AB Leasing Co., Ltd.
On 28 August 2026, BOL Financial Leasing and AB Leasing signed a conditional Merger by Absorption Agreement. The transaction envisages AB Leasing issuing new shares at RMB 2.28 per share to acquire all shares of BOL Financial Leasing, whose equity would be converted at RMB 1.89 per share, reflecting a conversion ratio of approximately 1:0.8272. If completed and if First Tractor were to participate, its current holding would translate into 113.74 million AB Leasing shares, representing about 2.44% of the enlarged AB Leasing share capital.
At BOL Financial Leasing’s extraordinary general meeting on 29 September 2026, First Tractor voted against all merger-related resolutions. Exercising shareholder rights under the PRC Company Law, First Tractor subsequently demanded that BOL Financial Leasing repurchase its entire 6.88% stake and appoint an independent audit and valuation firm to determine the buy-back price. As of 29 October 2026, no agreement on pricing has been reached.
First Tractor signalled readiness to initiate legal proceedings should negotiations fail, and pledged to make timely disclosures in line with Hong Kong and Shanghai listing rules. Investors are advised to exercise caution in dealing with First Tractor shares pending further updates.
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