China

Nanjing Quanxin Cable Technology Plans to Acquire Changkang Environment

Summary:

 

  • Nanjing Quanxin Cable Technology (300447.SZ) plans to acquire Changkang Environment Co. for RMB 726 million, according to Securities Times.

 

  • Shares in Nanjing Quanxin Cable Technology will resume trading on November 7.

Why It Matters:

  • Nanjing Quanxin Cable Technology will pay RMB 271 million in cash and issue 12.95 million shares at RMB 35.88 per share to finance the deal. Changkang Environment Co. is in the business of providing water desalination equipment for the military, especially for naval ships.
  • Nanjing Quanxin Cable Technology says that Changkang Environment Co. has established a good business relationship with the military, and the company expects future profit prospects will be stable.
  • In order to protect investors’ interests, Changkang Environment Co. has promised a minimum net profit of RMB 48 million in 2016 and RMB 59 million in 2017.