Newsflash Is Going To Buy 28% Stake In Mei Hong International, And The Price Will Be About 59 Million 720 Thousand Yuan.

In January 17th, the company issued a notice on the disclosure of the 28% equity interest in the acquisition of a non wholly owned Affiliated Companies. The company's wholly owned Affiliated Companies Best Invent entered into a sale and purchase agreement with the seller. Best Invent paid about 28% yuan in the US dollar at a cash price of about 59 million 717 thousand and 390 yuan (about 67 million 387 thousand and 400 yuan), and the shareholding increased to about 79% after the completion of the transaction.

It is said that in January 17, 2020 (after the trading session), Best Invent (the company's wholly owned Affiliated Companies) entered into a sale and purchase agreement with the seller. Accordingly, the seller agreed to sell the goods and Best Invent agreed to buy shares for sale (28% of Target Corp's issued shares). The total cash cost was 59717391 yuan (equivalent to about HK $67387428). Target Corp is a limited company incorporated in Hongkong and a holding company in Jiangsu Meijia, while Jiangsu Meijia is mainly engaged in manufacturing and selling brand fashion shoes and related materials. On the date of this announcement, the company holds 51% of the issued share capital of Target Corp. Upon completion, the company will hold 79% issued share capital of Target Corp.

It is estimated that the acquisition is expected to result in an increase or decrease in the profit attributable to the owners of the company after 2020 and thereafter. Moreover, after the seller has sold the shares for sale, it is estimated that the previous distributor rights between the seller's distributor and the Jiangsu Meijia will not be renewed. Therefore, Jiangsu Meijia will be able to regain the distribution rights in the relevant areas, so that the group can concentrate and simplify its operation and management of shoe retail business.