Hubei concludes Speed acquisition
November 20, 2019
Hubei Dinglong Holdings Co., Ltd. announced that it has now completed the purchase of 59 percent of Beihai Dexun Electronic Technology Co., Ltd. (Speed Infotech (Beihai) Co., Ltd. (Speed Infotech)).
First announced in June 2019, Hubei Dinglong has purchased a 59 percent stake in Speed Infotech for a transaction price of ¥247.80 million ($35.21 million/ €31.82 million), 80 percent of which is paid by way of issuing shares and a cash payment of ¥49.56 million ($7.04 million/ €6.36 million).
On 7 November the China Securities Regulatory Commission gave the approval for the purchasing of the assets. On 14 November, the Beihai Municipal Administrative Examination and Approval Bureau approved the transfer of the 59 percent equity of Beihai Jiexun to Hubei Dinglong.
In its half-yearly results report, Hubei Dinglong elaborated that the acquisition aids its strategic development needs and that it is looking to further expand the company’s printing consumables business. Hubei Dinglong is gaining expertise in remanufactured inkjet cartridges through mergers and acquisitions and investment methods. The company has obtained remanufactured inkjet cartridge suppliers through a combination of capital increase and equity transfer.
The company explained that the 59 percent equity acquisition of Beihai Dexun Electronic Technology Co., Ltd. was a perfect fit due to Hubei Dinglong being toner centric and now has additional expertise in inkjet and “can quickly open up the market with the advantages of upstream toner and chip products, and can also drive the sales of upstream toner and chip products.”
Categories : City News
