Gelonghui, May 14, 丨 Shanghai Electric (02727.HK) announced that on May 13, 2024, the board of directors reviewed and passed the relevant bill, agreeing that Shanghai Electromechanical, a non-wholly-owned subsidiary of the company, would acquire 4.4415% of Shanghai Jiyou's shares held by the Electric Group in Hong Kong in cash. The total cost was approximately RMB 236.216,700. The assessed value of all shareholders' equity value of Shanghai Jiyou was based on the assessed value of the total equity value of Shanghai Jiyou. After the acquisition is completed, Shanghai Electromechanical will hold 100% of Shanghai Jiyou's shares.
In response to policy requirements that encourage listed companies to focus on their main business and comprehensively use mergers, acquisitions, restructuring, equity incentives, etc. to improve the quality of development, and further promote the company's strategic layout and industrial integration in key industries around the company's development strategy of “focusing on national strategies, seeking steady progress, key breakthroughs, and achieving high-quality development”, and actively support subordinate enterprises to further specialize in new industries. Shanghai Electromechanical plans to acquire 87.6736%, 7.8849% and 4.4415% of the shares of Shanghai Jiyou, Shanghai Electric Hong Kong Co., Ltd., and Electric Group Hong Kong, respectively. The Hong Kong Department of the Group acquired 4.4415% of Shanghai Jiyou's shares to form a connected transaction in the company.
After the completion of the aforementioned transaction, the company's industrial equipment sector business will be effectively integrated. Shanghai Mechatronics will also clarify its position as a specialized new industrial platform, broaden the scope of industrial basic parts, key components, subsystems, and mechatronics products, build and improve the diversification of the product portfolio, and further develop the dominant position of Shanghai Mechatronics and Shanghai Jiyu in the field of industrial basic parts and key components to serve the country's manufacturing power strategy.