Chengdu Galaxy Magnets Co.,Ltd. (300127.SZ) disclosed a preliminary plan for issuing shares and paying cash to purchase assets while raising supporting funds. The company intends to acquire 100% equity of Kyoto Longtai from 14 transaction counterparties including Huaqiang Ruizhe, Tang Mingxing, Xu Gang, Fuzhou Qifu, Huaqiang Ruihua, Longtai Juli, Longtai Zhongjin, Chengdu Hengtong, Beijing Hexiang, Xinyu Qifu, Zhoushan Yashang, Jiaxing Qifu, Chengdu Honghe, and Changsha Qifu through a combination of share issuance and cash payment. Upon completion of the transaction, the listed company will hold 100% equity of Kyoto Longtai. The share issue price for purchasing assets has been set at 23.15 yuan per share. Additionally, the listed company plans to raise supporting funds by issuing shares through inquiry to no more than 35 qualified specific investors. The number of shares issued for supporting fund raising shall not exceed 30% of the company's total share capital after completion of this share issuance and cash purchase transaction, and the total supporting funds raised shall not exceed 100% of the consideration paid through share issuance in this transaction. According to the announcement, the target company's main business involves research and development, production, and sales of permanent magnet ferrite products. The permanent magnet ferrite materials produced by the target company are primarily used in DC motors, with main applications in the automotive industry. After the transaction completion, the listed company will further expand its magnetic materials product portfolio, increase its market share in automotive products, achieve complementary advantages through product diversification, and enhance its ability to resist market risks.
Comments