Intelligence Finance APP news, Yangtze Optical Fibre and Cable Joint Stock (601869.SH) announced that the company has signed a "Equity Acquisition Framework Agreement" with El.En.S.p.A. (referred to as "El.En."). It intends to acquire the controlling stake of El.En.'s subsidiary company Benteng Laser (Zhejiang) Co., Ltd. (referred to as "Benteng Laser") and Cutlite Penta S.r.l. (referred to as "Cutlite", collectively referred to as the "target companies") in cash. The company plans to invest RMB 0.299 billion to acquire 28.6983 million shares of Benteng Laser held by El.En., corresponding to 59.1837% of the equity; and to invest 16.546848 million euros to acquire Cutlite's registered capital of 0.335 million euros held by El.En., and to invest 2.532035 million euros for subscription of Cutlite's increased capital of 0.0513 million euros, after completion of the subscription, the company's shareholding ratio in Cutlite will be 70.0604%. The total consideration paid by the company for this transaction is approximately RMB 0.449 billion. After the transaction is completed, Benteng Laser and Cutlite will become subsidiaries of the company and be included in the company's consolidated financial statements.

The announcement stated that the target companies are mainly engaged in the research and development, production, and sales of high-power laser processing equipment, which are widely used in cutting, welding, new energy autos, and other fields. Benteng Laser and Cutlite have high brand recognition, sound sales channels, and stable customer resources both domestically and internationally. On the one hand, the target companies can help the company expand its overseas market for laser business and strengthen brand building; on the other hand, the company's international business layout can assist the target companies in further expanding their overseas market, and the company's business layout in electrical utilities, communication, new energy autos, and other fields is conducive to the target companies expanding their laser equipment business in these areas, achieving business synergy. The target companies have a leading market share and technological level, enabling advantageous complementarity with the company's related businesses in product and technology research and development, reinforcing their leading position.