Summary by Futu AI
Zhongda Group Holdings Limited announced after the trading session on 8 May 2024 that it has entered into a conditional merger agreement with FMC Cayman to co-invest and establish a joint venture in Hong Kong to focus on the development of the smart and new energy vehicle markets. The joint venture will be engaged in the production, design, research and sale of smart cars, as well as providing related after-sales services. Cundar Group will own 90% of the shares in the joint venture, while FMC Cayman will own the remaining 10%. In addition, the CNA Group and FMC Cayman also signed a Memorandum of Understanding on Strategic Cooperation and Investment on the same day to achieve mutually beneficial cooperation. Completion of the Joint Venture Agreement is subject to the adoption of the necessary resolutions by the Extraordinary General Meeting and obtaining all necessary consents and approvals. Upon the establishment of the joint venture, Zhongda Group will incorporate its results into the Group in the form of a non-wholly-owned subsidiary.