Events:
China dredging Environmental Protection Holdings Co., Ltd. announced that it entered into an agreement with Jiangsu Road Port Construction Engineering Co., Ltd. on December 20, 2013 to acquire 100% equity interest in Jiangsu Road Port Construction Engineering Co., Ltd at consideration.
Content:
The consideration is RMB 85.8 million and shall be paid to the seller in cash within three business days after the completion of the agreement. On November 6, 2013, the target company entered into an agreement with an independent third party to acquire Lugang Jun 1. On November 6, 2013, the transfer of Lu Gangjun 1 by an independent third party to the target company has been completed. The target company shall pay the purchase price of Lugang Jun 1 within two months from the relevant agreement. Upon completion of the agreement, China dredging Environmental Protection shall provide funds to the target company to pay the balance of the purchase price of Lugang Jun 1 (cutter suction dredger) of about RMB 210 million.
Comments:
The target company Jiangsu Road and Port Construction Engineering Co., Ltd. is mainly engaged in port and waterway engineering, reclamation and dredging projects, lake and river water quality restoration and treatment projects, as well as waterway maintenance projects at all levels. The business nature of the target company is consistent with that of China dredging Environmental Protection Company, and the target company has the first-class qualification of general contractor. At present, China's dredging environmental protection belongs to the second-class qualification and can only be engaged in subcontracting business in many projects. we believe that after the company obtains the first-class qualification of the general contractor through the acquisition of the target company, it can improve the ability and business strength of the company's dredging project.
The main asset of the target company is Lugang Jun 1 cutter suction dredger, which is worth about 290 million yuan, while the total acquisition amount of China dredging Environmental Protection in this acquisition is 295.8 million yuan. In terms of purchase price, Lugang Jun 1 cutter suction dredger is a new ship newly purchased by the target company, the age of the ship is short, the quality is excellent, and the purchase price is more cost-effective. At present, the demand for traditional reclamation and infrastructure dredging is stable, and the company's six dredgers are operating on different projects. It is believed that through the acquisition of Lugang dredger 1 cutter suction dredger, China's dredging capacity of environmental protection can be further improved. From the point of view of the acquisition price and the improvement of qualification brought about by the acquisition, this acquisition can bring positive benefits to the company.