On the evening of September 6th, Daon shares announced that it had signed an Equity Purchase Agreement with the counterparty with the conditions of the effective date. The company intends to purchase 80% of Haier New Materials held by Yantai Xu Lishengen in cash. After the completion of the transaction, Haier New Materials became a holding subsidiary of the company. The initial transaction price of Haier New Materials’ 80% equity was 263 million yuan. All are paid in cash and do not involve the issue of shares to purchase assets.
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In terms of performance commitments, Haier New Materials’ net profit attributable to shareholders of the parent company after deducting non-recurring gains and losses in 2018, 2019 and 2020 was RMB 185 million. According to the preliminary calculation of Haier New Materials’ unaudited 2017 financial data, this transaction constitutes a major asset restructuring.
The company’s main business is the development and production of thermoplastic elastomer products, modified plastic products and masterbatch products. The products are mainly dynamic vulcanized thermoplastic elastomers (TPV). Modified plastic products are mainly enhanced toughened modified plastics, high gloss modified plastics and flame retardant modified plastics. Haier New Materials is mainly engaged in the production and sales of modified plastics such as PP and ABS. Its modified plastic pellets are widely used in the production and processing of home appliances and automobiles. The downstream customers of the target company mainly include Haier Group, Matsushita Electric Industrial Co., Ltd., Yanfeng Automobile, and Mitsubishi. Haier new material customers and Dow shares customers have certain overlap and interaction, and all belong to the same industry, with high synergy.
The company said that after the completion of the transaction, Haier New Materials’ product advantages and sales channels will be used to further strengthen the cooperation with downstream customers and expand the product market.
Guotai Junan pointed out that Haier New Materials is mainly based on the production and processing of modified plastics for home appliances. This has enabled the company to further enhance its technology and channel advantages in the field of modified plastics and become a leading provider of modified plastic solutions.
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