Yeebo Announces the Disposal of 20.02% of the Equity Interests of Nantong Jianghai at a Consideration of RMB3,232 Million
HONG KONG SAR - Media OutReach Newswire - 13 March 2024 – Yeebo (International Holdings) Limited ("Yeebo" or the "Company", stock code: 259, which together with its subsidiaries is referred to as the "Group") announces that the Group has entered into the Share Purchase Agreement with Zhejiang Construction Investment Group Company Limited ("Zhejiang Construction Investment"), a state-owned enterprise, through its direct wholly-owned subsidiary, Billion Power Investment Limited.
The Group agrees to sell 20.02% of the total issued share capital of Nantong Jianghai Capacitor Co., Ltd. ("Nantong Jianghai") to Zhejiang Construction Investment at a consideration of RMB3,232,470,000, representing a price of RMB19 per share. The sale consideration shall be paid in cash by Zhejiang Construction Investment.
Upon the completion, the Group will continue to own 74,891,000 Nantong Jianghai shares, representing 8.81% of the total issued share capital of Nantong Jianghai, and Nantong Jianghai will cease to be an associate of the Group. Currently, the Group has no intention to dispose of further Nantong Jianghai shares. As of yesterday's closing price of Nantong Jianghai at RMB18.53 per share, the Group's stake in Nantong Jianghai is valued at RMB1,388 million.
The Company intends to apply the net proceeds from the disposal to invest into its existing business to improve its operational capabilities, while part of it will be used as general working capital. If appropriate opportunities arise, the Company may consider engaging in strategic business acquisitions. The Company may consider returning the surplus cash to shareholders by way of a declaration of dividends. In addition, a special general meeting will be convened and held by the Company to seek the Shareholders' approval for the Share Purchase Agreement and the disposal.
Mr. Fang Yan Tak, Douglas, Chairman of Yeebo, said, "In addition to focusing on deepening its core business, Yeebo is also actively exploring investment or acquisition opportunities for market leading companies with high technological advantages, as well as undertaking a strategic review of its businesses and investments. The Group started investing in Nantong Jianghai in 2005. Its business has since grown substantially, and it became an independently listed company in 2010. We consider that the introduction of Zhejiang Construction Investment as a strategic investor into Nantong Jianghai would further enhance its future growth and development. In addition, the disposal would crystalise a gain on its equity investment. It will better position the Company for further development on its businesses and stay the course on its transformation and strategic focus on industries centered on advanced technology-based manufacturing."
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The issuer is solely responsible for the content of this announcement.
About Yeebo (International Holdings) Limited
Founded in 1988, Yeebo (International Holdings) Limited is a diversified electronic component company, with a wide range of business interests in flat panel display, OLED and capacitor. Headquartered in Hong Kong, the manufacturing activities largely reside in Guangdong and Jiangsu provinces. With a global sales footprint, Yeebo is able to serve its global customers on a local basis.