China

China TransInfo Technology Plans to Acquire Jiaozhi Tech for RMB 4.5 Bln

Summary:

  • China TransInfo Technology (002373.SZ) plans to acquire Jiaozhi Tech. for RMB 4.5 billion, as reported by jrj.com.
  • Shares of China TransInfo Technology will continue to be halted from trading.

Why It Matters:

  • China TransInfo Technology plans to issue 381 million shares at RMB 11.94 per share to finance the deal. The firm also plans to raise another RMB 600 million through private placement.
  • Jiaozhi Tech. is a leading Chinese video surveillance provider and ranks 7th in terms of global market share. The major business of¬†China TransInfo Technology is smart transportation and the deal would enable the company to control the whole value chain.
  • In order to protect investors’ interests,¬†Jiaozhi Tech. has promised minimum net profits of RMB 404 million for 2018 and RMB 504 million for 2019.