SaiTeng Co., Ltd. plans to acquire 61.2 million yuan to acquire Changding Electronic Co., Ltd.

Saiteng announced that the company and Chen Nengqiang, Ge Pengju, Zhu Caifei, and Yu Yongfu signed the “Letter of Intent for Investment” and planned to acquire 5 percent of the Wuxi Changding Electronics Co., Ltd.’s shares held by them. The transaction price is RMB 61.20 million. If the investment project eventually signes a formal cooperation agreement, Wuxi Changding Electronics Co., Ltd. will become a holding subsidiary of the company, and the company will use this to enter the semiconductor automation equipment industry.

According to the announcement, Wuxi Changding Electronics Co., Ltd. (unaudited) has a total assets of 28,907,300 yuan in 2017, liabilities of 20.825 million yuan, net assets of 8,082,300 yuan, main business income of 36,965,400 yuan and net profit of 7,906,100 yuan.

According to the announcement, the target company’s valuation is 120 million yuan, which is 12 times the net profit promised in 2018, and the transaction price of 51% stake is 61.2 million yuan. The transferor promised the company in 2018, 2019 and 2020 after-tax The profits are not less than 10 million yuan, 12 million yuan and 14 million yuan respectively.

SaiTeng said that Wuxi Changding Electronics has rich customer resources and technology reserves in the field of semiconductor packaging and testing automation equipment. This acquisition will help the company seize the development opportunities in the semiconductor and integrated circuit industries and create new profit growth points.