Orede announced that the company’s planned mergers and acquisitions plan to issue shares of Hefei Ruicheng to the five companies including Hangzhou Ruiyue at a price of RMB 15.88 per share to purchase 100% stake in Hefei Ruicheng (Huizhou Ruiyue is controlled by Zuo Hongbo). The price is tentatively set at 7.185 billion yuan. At the same time, it is planned to pay China Wealth a cash purchase of 16% of Hong Kong Ruihua, and the price is tentatively set at 1.45 billion yuan. In addition, the listed company plans to raise matching funds not to exceed 3.75 billion yuan.
However, the proposed acquisition of Hefei Ruicheng, but also exposed the existence of the important problems of Ao Ruide. Orede announced that the main reason for the termination of the control shareholder Zuo Hongbo control of Hangzhou Rui Yue previous equity transfer failed to press Appointment to pay. According to the announcement, Hangzhou Ruiyue has paid to Hefei Xinrong, Beijing Jiaguang to pay a total of RMB 1.1 billion equity transfer price and delayed payment penalty, and the remaining equity transfer price should be on April 10, 2018 (inclusive). (1) As of the date of this announcement, Hangzhou Ruiyue failed to pay the remaining equity price in accordance with the agreement. Hangzhou Ruiyue and Hefei Xinyuan, Beijing Jiaguang and other related parties also failed to sign a new supplementary agreement on deferred payment.
The actual business entity of Hefei Ruicheng planned to be acquired is Ampleon Group in the Netherlands. Ampleon Group is a provider of RF power chips. In 2015, it was detached from globally known semiconductor company NXP. It is a well-received semiconductor target for Chinese companies to acquire overseas.
In addition to the termination of the restructuring, Oreder also released its 2017 financial report. The company achieved operating income of RMB 1.19 billion in January-December 2017, a year-on-year decrease of 19.52%. The net profit attributable to shareholders of listed companies was RMB 5,550.49 million, a year-on-year decrease of 88.17. %. Prior to this, Orad expects net profit attributable to shareholders of listed companies from January to December of 2017 will be 194 million, a year-on-year change of -58.00%.