Home / Knowledge / News / Textiles / Jingwei Textile Machinery to buy 36% stake in Zhongrong Trust
Jingwei Textile Machinery to buy 36% stake in Zhongrong Trust
28
Jan '10
The Board of Jingwei Textile Machinery Company Limited entered into the conditional Acquisition Agreement with the Vendor. Pursuant to the Acquisition Agreement, the Company has agreed to acquire the Sale Interest at the Consideration of initially RMB1.2 billion (equivalent to approximately HK$1,363.64 million), subject to adjustments.

Pursuant to the terms of the Acquisition Agreement, the Consideration shall be settled in cash. Upon Completion, the Company will own 36% equity interest in Zhongrong Trust and will secure effective control over it by virtue of its control over the board of Zhongrong Trust. Accordingly, Zhongrong Trust will become a subsidiary of the Company and its financial results will be consolidated into the financial statements of the Group.

The Acquisition constitutes a very substantial acquisition on the part of the Company under Chapter 14 of the Listing Rules. Accordingly, the Acquisition Agreement and the transactions contemplated there under are subject to the approval of Shareholders at the EGM. As no Shareholder has any material interest in the Acquisition, no Shareholder is required to abstain from voting at the EGM to approve the Acquisition Agreement and the transactions contemplated there under.

A circular containing, among other matters, further details of the Acquisition and a notice convening the EGM, will be despatched to Shareholders in compliance with the Listing Rules.

As at the date of this announcement, Zhongzhi Group was owned as to 80% by Liu Yang and 20% by the Committee of the Employee Association of Zhongzhi Group. To the best of the Directors' knowledge, information and belief having made all reasonable enquiry, the Vendor and its ultimate beneficial owners are third parties independent of the Company and connected persons of the Company, and there shall be no restriction for any subsequent sale of the Sale Interest acquired by the Group.

Assets to be acquired
Pursuant to the Acquisition Agreement, the Company has conditionally agreed to acquire and the Vendor has conditionally agreed to dispose of the Sale Interest, representing 36% equity interest in the entire registered capital of Zhongrong Trust.

Consideration and pricing basis
The Consideration for the Acquisition of not more than RMB1.2 billion (equivalent to approximately HK$1,363.64 million) shall be payable in cash and satisfied in the following manner:

Zhongzhi Group is a limited liability company established in the PRC with diversified business operations. It is principally engaged in, among others, asset investment and management, investment and financial advisory businesses, technological development and import and export of commodity and technology and agent services for import and export businesses.

Zhongrong Trust
Zhongrong Trust (formerly known as Harbin International Trust Investment Co., Ltd is a limited liability company established in the PRC.Harbin International Trust Investment Co., Ltd, the predecessor of Zhongrong Trust, was established in 1987.

Jingwei Textile Machinery Company Limited


Must ReadView All

Apparel/Garments | On 22nd Sep 2017

Govt announces new duty drawback rates for garments

The Government of India has today announced the new duty drawback...

Courtesy: ITMA

Textiles | On 22nd Sep 2017

ITMA 2019 to focus on smart garment technologies

ITMA 2019, the world's largest textile and garment technology...

Apparel/Garments | On 22nd Sep 2017

New US FTC rule for RN used on textile product labels

The US Federal Trade Commission recently streamlined requirements...

Interviews View All

Hannah Lane
Redress

Encouragement from brands will motivate supply chains to become more...

Amit Jain
Shingora Textiles Ltd

‘In terms of fabric, the fastest growing category for us is a blend of...

Headhonchos
Textiles & allied industry

Textiles industry is always in the forefront in accepting latest technology

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

September 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search