SZAJ Electronic Technology Group announced on the evening of the 21st that the company intends to purchase 100% equity of GDWB Precision Technology Co., Ltd. by issuing shares and paying cash. With reference to the assessment results of the "Asset Appraisal Report" and friendly negotiation between the parties, the transaction consideration is determined as 3.4 billion yuan, of which 70% of the company’s shares are used to pay for the transaction consideration and 30% of the cash is used to pay for the transaction. The issuance price of the issuance of shares to purchase assets is 90% of the average price of the company’s shares on the 60 trading days before the reference pricing base date, which is 30.22 yuan per share.
The transaction intends to issue shares to no more than 10 other specific investors to raise matching funds, with a total matching funds not exceeding 1.52 billion yuan, which will be used to pay cash considerations, transaction costs and GDWB's sophisticated "Consumer Electronics Metal Precision Structural Parts Construction Project" Implementation.
About SZAJ
ZAJ was founded in 1989 and was listed on the Shenzhen Stock Exchange in 2008. It is a provider of overall program design specializing in various special electronic insulation materials, cushioning materials and other professional functional materials.
It mainly produces various conductive materials, shielding materials, various imported double-sided tapes, various backlight materials, various insulating materials, various protective films, logos, panels, FPC and glass products.
About GDWB precision
GDWB has more than 5,000 employees and has the entire processing technology of precision CNC machining, sandblasting, grinding, anode, stamping, hot press forming, injection molding, assembly, measurement and full inspection.
The main products are the metal exterior parts of consumer electronic products such as smart phones, tablets, wearable devices, and the terminal products are mainly domestic brand smart phones such as OPPO, VIVO, Huawei, Xiaomi and Lenovo. Its 2017-2019 promised net profit is not less than 330 million yuan, 420 million yuan and 530 million yuan respectively.
SZAJ said that consumer electronic metal precision structural parts belong to the category of consumer electronic precision structural parts. The company's consumer electronic non-metal precision functional parts business and Weibo Precision's metal precision structural parts business have synergistic and complementary effects.
The consumer electronics industry as a whole is in a period of rising development in China, and it has broad market prospects from the analysis and demand forecast of consumer electronics and its metal precision structural parts industry.
This transaction is one of the important steps for the company to further expand into the consumer electronics metal precision structural parts segment. After the completion of this transaction, GDWB Precision will become a wholly-owned subsidiary of SZAJ, which will help strengthen the company's continued profitability.