(Yicai Global) May 20 -- Chinese internet data center service provider Golden Cloud Technology will pour all of its CNY2.5 billion (USD352 million) assets into Amsky Technology in what is set to be the first backdoor listing on the Shenzhen Stock Exchange’s Growth Enterprise Market, Amsky said in a reorganization plan yesterday.
Guangzhou-based Amsky’s shares [SHE:300521] rose to the daily 10 percent price limit to stop trading at CNY10.38 (USD1.46) on the news after opening today after the company's stock resumed trading today after the proposed reorganization prompted a 14-day suspension.
Amsky, which is a computer to plate printing machine maker, will buy all of Guangzhou-based Golden Cloud Technology from Xinyu Dekun Investment Partnership, I-Services Network Solution and Gongqingcheng Moyun Investment Partnership through an asset swap and other methods. It will also exchange assets with an estimated value of CNY500 million for assets with an initial transaction price of CNY2.5 billion.
The difference in worth between the assets swapped will be paid to the other party via private placement and cash, each making up half of the total. The shares’ issue price is CNY9.30 (USD1.30).
Amsky’s controlling shareholder Guangzhou Aishute Investment also plans to transfer its 8.52 percent stake to Detong Shanghai Equity Investment Management for CNY9.30 per share in a deal worth CNY114 million.
Xinyu Dekun Investment Partnership, DT CTP Investment, and Detong Shanghai Equity Investment Management will become Amsky’s biggest shareholder post-transaction. I-Services Network Solution and Gongqingcheng Moyun Investment Partnership will hold over 5 percent stakes.
DT CTP Investment currently holds over 11 percent of Amsky.
Formed in December 2015, Golden Cloud's main business is internet data center and internet access services, mainly in the Guangdong-Hong Kong-Macao Greater Bay Area, with business spanning Beijing, Shanghai and Yangzhou in eastern Jiangsu province.
Golden Cloud's net assets were CNY1.1 billion at the end of last year. It recorded CNY215 million in revenue and almost CNY72 million in net profit last year.
The GEM is a board of the Shenzhen Stock Exchange on which a company seeking an IPO must either make a profit in each of the last two years, with cumulative profit of at least CNY10 million and with a profit growth trend, or turn a profit in the last year with a net profit of CNY5 million or above and yearly revenue of CNY50 million or more and annual revenue growth of at least 30 percent in the last two years.
Editor: Ben Armour