China

Goldlok Toys Plans to Acquire Controlling Stake in Educational Service Provider Shenzhen Yidu for RMB 360 Mln

Summary:

  • 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.