The SSE issued an inquiry letter to Gree Group requesting that the company currently hold a cash position. Whether the follow-up capital arrangement must be resolved through financing arrangements; if so, please specify the financing method and the ultimate funder.
Tencent Technology News On May 15th, the SSE issued an inquiry letter to Gree Group to explain the Gree Group’s proposed tender offer to acquire 20% of Changyuan Group's shares.
Earlier today, Gree Group decided to purchase 20% of Changyuan Group's shares (a total of 264,935,431 shares) in a partial offer with an offer price of RMB 19.80 per share. The total capital required for the tender offer was RMB 5,245,721,533.80.
According to the tender offer announcement, the funds required for the tender offer will come from Gree Group's own and self-raised funds, and will not directly or indirectly come from the listed company or its related parties.
The inquiry letter requires Gree Group to explain the following:
1. Whether the tender offer is for the purpose of seeking control rights and the influence on the company’s control rights. Whether there is still a plan to continue to purchase the company’s shares after the tender offer and the related uncertainty and risks are indicated.
2. The company currently holds a cash position. Whether the follow-up capital arrangement must be solved through the financing arrangement; if yes, please specify the financing method and the ultimate funder; whether there will be follow-up arrangements for the pledge of the shares of the listed company; whether there will be 12 months Related reduction plan.
3. Please combine the business of the company, the concerted parties and their controlling shareholders, the actual controllers and the companies controlled by them, and indicate whether the above-mentioned entities have the same industry competition or potential peer competition with Changyuan Group.
4. As the purchase price is relatively close to the pre-suspended price, the initial date of the tender offer is still uncertain. The company and the listed company are requested to fully inform the risk that the stock price fluctuation may lead to the failure of the tender offer and provide a separate risk warning.