Goldlok Toys Holdings (GuangDong) Co.,Ltd. (002348.SZ) recently announced plans to acquire a 45% stake in Shenzhen Yidu Information Industrial Inc. for RMB 270 million cash, as reported by Cnstock.
Goldlok Toys also plans to increase its investment in Shenzhen Yidu by RMB 90 million.
After the deals, Goldlok Toys will hold a 53.25% stake in Shenzhen Yidu at a total cost of RMB 360 million.
Why It Matters:
- Shenzhen Yidu promises to generate accumulated net profits of no less than RMB 157 million over the next three years.
- Founded in 2010, Shenzhen Yidu is a leading Chinese interactive educational device and software producer and educational cloud service provider holding multiple patents. The company posted a net profit of RMB 10.63 million for 2016.
- Goldlok Toys is an electronic and electrical plastic toys manufacturer and distributor. Acquisition of a controlling stake in Shenzhen Yidu could help the company expand in the educational service sector.