(Yicai Global) Aug. 21 -- KanHoo Industry, a Chinese manufacturer of materials for lithium batteries, has agreed to buy a company that supplies equipment used to make the rechargeable batteries in a move designed to complement its core business and further entrench its position in the field.
KanHoo Industry has signed a letter of intent with major shareholders of Shenzhen Yu Chen Automation Equipment to buy firm, whose market value was agreed at CNY450 million (USD66 million), the Jiangmen, Guangdong province-based company said in a statement yesterday. KanHoo will pay 35 percent in cash and issue shares for the remainder.
The value of the shares will be calculated based on the company's average share price on the 20 trading days up to yesterday, and will be subject to a three-year lock-up, the statement said.
The deal is conditional on Yu Chen Automation having made at least a CNY15 million net profit last year. After the earnings audit and due diligence conclude, the two parties will sign a detailed equity transfer agreement, the statement added.
Yu Chen Automation supplies assembly and test automation equipment to the world's major lithium battery makers such as CATL, AVIC lithium power, lithium energy and other domestic customers, as well as Philips of the Netherlands, Germany's WIK, and numerous others.
Editor: Ben Armour