China Textile City Acquired Major Shareholder 2 Billion 200 Million Interbank Assets

Since July 4th Suspension The textile city (600790) announced the acquisition today. Asset plan The company intends to become the largest shareholder of Shaoxing Textile City Development and Operation Co., Ltd., and purchase the assets of the Dongsheng Road market and the North Alliance market, and the corresponding advance rent, deposit and so on.

The estimated value of the proposed acquisition assets is about 2 billion 230 million yuan, of which 1 billion 476 million yuan is taken as the consideration price of the non-public offering shares of the textile city to the development company. The difference is partly paid by the advance rent charged by the light textile city to invest in the assets of the development company. The textile city has been criticized for large-scale competition among its major shareholders. The acquisition is aimed at eliminating competition in the same industry.

The issuance price is set to be 8.01 yuan / share, and the number of issue shares will be 184 million shares. After the transaction is completed, the total share capital of the company will be 803 million shares, and the shareholding ratio of the development company holding the listed company will be increased from 15.64% to 35%.

It is understood that in November 2008, the development company through the agreement to become a major shareholder of the Textile City, committed to its own related market resources gradually injected into the company, bigger and stronger light textile market business.

However, the development company still has some remaining market assets, such as the clothing and apparel market, and has some degree of competition with the textile city because of the poor profitability of the market assets. Assets right It has some defects and needs to be solved for a long time, so it is not included in the scope of this reorganization.