Changyuan Donggu to Acquire Xiangyang Kanghao for RMB 5.01 Billion in Share Deal
Changyuan Donggu plans to acquire 100% of Xiangyang Kanghao Mechanical & Electrical Engineering for RMB 5.01 billion via a share issuance, with a concurrent private placement of up to RMB 2 billion. The deal, priced at RMB 29.75 per share, will issue 168 million shares, representing 34.19% of post-issuance capital. It awaits shareholder, exchange, and regulatory approvals.
Changyuan Donggu disclosed a major asset restructuring draft on September 7, proposing to acquire 100% of Xiangyang Kanghao Mechanical & Electrical Engineering Co. , Ltd. from Hubei Xinyuan Power Technology Group Co. through a share issuance, at a transaction price of RMB 5.01 billion. Concurrently, the company plans to issue shares to no more than 35 specific investors to raise supporting funds of up to RMB 2 billion.
The issuance price is set at RMB 29.75 per share, with a planned issuance of 168 million shares, accounting for 34.19% of the total post-issuance share capital. The transaction constitutes a related-party transaction and a major asset restructuring, but does not amount to a backdoor listing. It remains subject to shareholder approval, review by the Shanghai Stock Exchange, and registration consent from the China Securities Regulatory Commission.
Kanghao Mechanical & Electrical's main businesses include the research, development, production, and sale of heat exchange systems, as well as power unit operations, covering agency sales of engines and power units, and the manufacturing and sale of power unit components such as electronic speed control systems. Upon completion of the transaction, Changyuan Donggu will extend its operations downstream into heat exchange systems and related industrial chains, while also taking over Kanghao's customer resources, professional R&D and testing platforms, and technical talent teams in sectors such as power equipment, oil and gas fields, and rail transit, thereby forming a synergistic industrial chain layout.