Zhitong Finance App News, Deshi Co., Ltd. (301158.SZ) announced that the company plans to acquire 70% of the US IAE International Inc. (“IAE”) shares held by Roxanne Howe in cash. The total purchase price is estimated to be 4.9 million US dollars. After the transaction is completed, the company will hold 70% of the shares in the target company IAE. Following the completion of the settlement, the company and Roxanne Howe will increase the capital of the target company by a total of 2 million US dollars according to their respective shareholding ratios, that is, the company invested 1.4 million US dollars and Roxanne Howe invested 0.6 million US dollars. The capital increase was used to support the future business development of the target company. The total amount of these transactions was $6.3 million.

According to the announcement, the target company is engaged in the leasing and sale of drilling tools for the oil and gas industry in North America, and is an important supplier of underground power drilling tools in North America. This transaction can expand the company's market business scale in North America and South America, introduce and absorb the latest technical level of underground power drilling tools in North America, and achieve complementary resources and win-win cooperation between the two sides in terms of R&D capabilities, production technology and international business development, and has a positive impact on the global development of the company's business.