SKYWORTH GROUP plans to acquire a 40% stake in Fengchi Electronics and increase its capital
SKYWORTH GROUP announced plans to acquire a 40% stake in Fengchi Electronics and to increase its capital. Shenzhen Skyworth Digital, a wholly-owned subsidiary, will transfer its equity holdings for RMB 116 million, while SKYWORTH GROUP will increase its capital by RMB 104 million with its 100% stake in Anshida. After the transaction is completed, Shenzhen Skyworth Digital's equity will decrease to 32.40%, and Fengchi Electronics will no longer be included in the consolidated financial statements. SKYWORTH GROUP expects to hold a 55.82% stake
According to the Zhitong Finance APP, Skyworth Group (00751) announced that, based on the company's long-term development, it will concentrate resources on developing core businesses, reduce related transactions, and avoid competition with peers. Skyworth Digital Co., Ltd. (Skyworth Digital), a wholly-owned subsidiary of Skyworth Group, intends to transfer 40% of its equity in Fengchi Electronics Co., Ltd. (corresponding to a registered capital of RMB 4 million) to Skyworth Group Co., Ltd. (Skyworth Group) for a price of RMB 116 million. At the same time, Skyworth Group will conduct a capital increase in Fengchi Electronics Co., Ltd. for RMB 104 million (corresponding to a registered capital of RMB 3.5795 million) by evaluating its 100% equity in Shenzhen Anshida Technology Service Co., Ltd. (Anshida Company) (corresponding to a registered capital of RMB 30 million). Shenzhen Skyworth Digital intends to waive its preemptive rights for the capital increase amount of RMB 115 million in Fengchi Electronics Co., Ltd.
Before this transaction, Shenzhen Skyworth Digital held 84% of the equity in Fengchi Electronics Co., Ltd. After the completion of the equity sale and capital increase, the equity held by Shenzhen Skyworth Digital in Fengchi Electronics Co., Ltd. is expected to decrease to 32.40% (subject to the actual registration in the industrial and commercial registration). Fengchi Electronics Co., Ltd. will no longer be included in the company's consolidated financial statements. After this transaction, it is expected that Skyworth Group will hold 55.82% of the equity in Fengchi Electronics Co., Ltd
