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(Yicai Global) Oct. 17 -- Shanghai Huaming Intelligent Terminal Equipment Co. [SHE:300462] plans to buy a 90-percent stake in Beijing Guozhengtong Technology Co. for CNY16.65 billion (USD256 million) to expand big data capabilities in its industrial chain, the potential buyer said in a press briefing yesterday.
The company will make the acquisition using CNY518 million (USD79.7 million) in cash and CNY1.14 billion (USD176 million) worth of shares.
Guozhengtong provides Big Data services from multiple sources to financial institutions, telecommunications operators and government agencies to prevent fraud.
Huaming is a high-tech enterprise that specializes in the independent research, development, manufacture and sales of terminal equipment for automatic fare collection systems in the rail transit and bus rapid transit sectors, among others.
The company's products mainly consist of automatic machines for the sale, checking and replacement of tickets.
Guozhengtong expects to report net profit for 2017 of at least CNY85.45 million (USD13.14 million), and accumulated net profit over the next three years of at least CNY366.7 million (USD56.41 million).