Huangshan Jinma restarts Zotye Auto purchasing project

Huangshan Jinma restarts Zotye Auto purchasing project

Gasgoo (Shanghai, October 17)—Huangshan Jinma released announcement that it would issue shares to purchase 100% shares of Zotye Auto, with the total transaction amount of RMB 11.6b.

On March 28^th, Jinma firstly released announcement to purchase 100% shares of Zotye, by issuing shares and paying cash. Jinma would purchase total shares with RMB 11.6b, in which RMB 9.6b will be paid by 1.77b shares and the remaining RMB 2b would be paid in cash. In the meantime, the company would issue shares to raise RMB 10b from Zotye’s shareholders, such as Tech New Group, to integrate listed company’s resources and support alternative energy vehicles’ businesses. After the transaction, Jinma Group and Tech New Group held 2.56% and 38.35% shares of the listed company respectively.

However, Jinma submitted the application of suspension on the above transaction to CSRC. Jinma said that the great changes had taken place in the current securities market, and further analyses and arguments were needed to revise the transaction.

On the restarting of purchasing Zotye, Jinma said that the successful transaction would make the full entry of current auto parts into Zotye’s auto supporting system, thus forming the effective interaction of part business and auto business. The company’s main business would transform from the parts production to auto production. The company will march into the auto sales and after-sales market and obtain economic benefits brought by vertical integration, which will raise the company’s comprehensive competitive strengths.