(Yicai Global) Sept. 28 -- Chinese papermaking firm Zhejiang Kan Specialities Material Co. [SHE:002012] plans to acquire lithium battery manufacturer Shenzhen Zhuoneng New Energy Technology Co. for USD409.9 million (CNY2.72 billion) to expand its business in the new energy industry.
Zhejiang Kan, which obtained a 2.14-percent stake in Shenzhen Zhuoneng in a private placement in March, said it will acquire the remaining 97.86 percent via share issuance and cash, making the target its wholly-owned subsidiary.
Zhejiang Kan intends to raise funds through a non-public offering by issuing at most 20 percent of its total share capital -- 93.53 million shares at USD1.79 per share. The company will use the funds to replace the cash it paid in the transaction, cover related intermediary costs, and make investments in Shenzhen Zhuoneng's new energy projects.
Shenzhen Zhuoneng has many years of experience in lithium battery industry research and development. Several domestic digital product makers and NEV manufacturers use its technologies. The company listed on China's National Equities Exchange and Quotations (NEEQ), better known as the New Third Board, in March last year.
Zhejiang Kan mainly engages in specialty paper manufacturing. Its operations cover industrial paper, food packaging paper and filter paper. The group invested USD7.53 million in a solar energy firm in Shenzhen this month.