(Yicai Global) June 28 -- The shareholders' meeting Dongxu Optoelectronic Technology Co. [SHE:000413] held yesterday has deliberated and passed a resolution to take over Shanghai Shenlong Bus Co., the firm said today.
Dongxu Optoelectronic plans to buy a 100 stake in Shanghai Shenlong by issuing shares and paying cash in a deal worth USD439 million (CNY3 billion).
Dongxu Optoelectronic will invest a planned CNY3 billion in the project to build a large new-energy vehicle (NEV) production based with an annual capacity of 10,000 new-energy buses and 30,000 new-energy logistics vehicles. Once the project works at full capacity, it will generate CNY9 billion in revenue and CNY985 million in net profit annually, per a restructuring report the company issued.
Following the acquisition, Dongxu Optoelectronic will be able to supply graphene lithium ion batteries it produces to Shanghai Shenlong's new energy vehicles, forming an industrial chain featuring 'graphene materials -- graphene coated lithium iron phosphate cathode materials -- graphene lithium ion batteries -- NEVs' thus officially infiltrating the new energy vehicle industry.
Dongxu Optoelectronic and Shanghai Shenlong are highly complementary in the three respects of capital and industry, resources and market and technology and industrial chain, said Li Quannian, head of the acquisition project. With its strong technological spillover capabilities, Dongxu Optoelectronic can apply its technology systems and high-end equipment manufacturing ability to the new-energy bus industry to help promote the industrial chain's overall development.
Dongxu Optoelectronic closed up CNY0.54 or 5.12 percent at CNY11.09 yesterday.