China

Zhaoqing HuaFeng Electronic Aluminium Foil Plans to Buy Out BIT HuaChuang Electric Vehicle Technology for RMB 827 Mln

Summary:

  • Zhaoqing HuaFeng Electronic Aluminium Foil (002806.SZ) recently announced plans to buy out BIT HuaChuang Electric Vehicle Technology Co., Ltd. for RMB 827 million, as reported by Cnstock.
  • Zhaoqing HuaFeng Electronic Aluminium Foil plans to finance the deal by issuing approximately 39 million shares at RMB 21.21 per share.
  • In addition, Zhaoqing HuaFeng Electronic Aluminium Foil¬†plans to raise up to RMB 667 million through a private placement to invest in electric car projects encompassing crucial parts research and production in Beijing and Zhaoqing.

Why It Matters:

  • The ultimatel controller of Zhaoqing HuaFeng Electronic Aluminium Foil will remain unchanged after the deal.
  • Founded in 2010, BIT HuaChuang Electric Vehicle Technology mainly develops parts and components for electric vehicles.¬†The company promises to generate net profits of no less than RMB 20 million, RMB 40 million, RMB 52 million, and RMB 68 million respectively for 2017, 2018, 2019, and 2020.
  • Zhaoqing HuaFeng Electronic Aluminium Foil is principally engaged in the research, design, manufacture, and distribution of aluminum foil products. The company believes that the acquisition of BIT HuaChuang Electric Vehicle Technology will help it diversify its businesses and generate greater profits.