TIANYE WATER's controlling shareholder, TIANYE Group, plans to establish Xinjiang Tianze Water Conservancy Investment Development Co., Ltd. with the State-owned Assets Supervision and Administration Commission of the Eighth Division
TIANYE WATER announced that its controlling shareholder, TIANYE Group, intends to jointly establish Xinjiang Tianze Water Investment Development Co., Ltd. with the State-owned Assets Supervision and Administration Commission of the Eighth Division. According to the proposal, the State-owned Assets Supervision and Administration Commission will transfer 37.5% of the equity of the new holding company to TIANYE Group at zero cost, and the latter will contribute its entire equity in TIANYE WATER to meet the target capital. The restructuring is still in the preliminary stage, and there is no guarantee of final implementation
According to the Zhitong Finance APP, TIANYE WATER (00840) announced that it has received a notification from its controlling shareholder Xinjiang Tianye (Group) Co., Ltd. (Tianye Group) to utilize Tianye Group's advantages and resources in water management and to promote Tianye Group's development into a first-class sustainable enterprise. The State-owned Assets Supervision and Administration Commission of the Eighth Division of the Xinjiang Production and Construction Corps (Eighth Division SASAC) has proposed the establishment of Xinjiang Tianze Water Investment Development Co., Ltd. (new holding company, a newly established holding company) (proposed restructuring), with details as follows:
(a) The Eighth Division SASAC will transfer 37.5% (subscribed but unpaid capital) of the total equity of the new holding company to Tianye Group at zero cost, and subsequently, (ii) the target capital will be fully paid by Tianye Group through injecting all its equity in the company (approximately 60.42% of all issued shares of the company); and
(b) The Eighth Division SASAC will entrust Tianye Group to exercise (i) certain voting rights; and (ii) certain director nomination rights (proposed entrustment arrangement) in the new holding company, so that Tianye Group can exercise a total of 51% voting rights in the new holding company and control the board of directors of the new holding company.
The proposed restructuring is still in the preliminary stage, and there is no guarantee that the proposed restructuring will be implemented or ultimately completed. Therefore, the proposed restructuring may not proceed
