OKE Precision Cutting Tools to Acquire 51% Stake in Yongxin Precision

MT Newswires Live08-27 17:33

OKE Precision Cutting Tools (SHA:688308) plans to acquire a 51% controlling stake in Yongxin Precision via equity purchases and a capital increase.

Shareholders participating in the performance commitment and earn-out agreement will transfer 17.88% of their equity interest at a valuation of 629 million yuan, while shareholders not participating in the performance commitment and earn-out agreement will transfer 4% of their equity interest at a valuation of 400 million yuan.

The company will transfer 15.62% of its equity at a valuation of 100 million yuan, for a total transaction consideration of 175 million yuan.

Simultaneously, OKE Precision Cutting Tools will increase its capital in the target company by 250 million yuan, acquiring a 26.32% holding.

Shares of the cutting tools maker closed less than 2% higher Thursday.

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