3 98 billion rights issue to acquire new energy assets Jiangnan chemical transformation

Polaris solar PV net news: under downward pressure in the explosive industry, Jiangnan chemical decision added new energy such as wind power, solar power, dual-core-driven development in transition. Company January 24 evening announcement, intends to issued shares of way purchase holding shareholders shield Ann holding group, total 9 name trading other total holds of Zhejiang shield anxin Energy Corporation (following referred to “shield anxin energy”) all equity, total on price for 3.98 billion yuan; while intends to not over 10 name specific investors non-public issued shares raised supporting funds not over 3 billion yuan, for standard of company in Shanxi, and Gansu, to four a wind farm project construction and the paid intermediary costs.

Notice shows that the asset purchases of shares priced at 8.73 Yuan/share, proposed to the counterparty issue shares amounted to 456 million shares, higher than on November 11 last year suspended Jiangnan chemical 8.61 Yuan per unit price. By supporting the price of financing 8.4 Yuan per share, some intends to issue shares in counterpart funding level of about 357 million shares. As Dunan holdings as Jiangnan chemical anxin energy and shield of the controlling shareholders, the deal for assets purchased under the same control, controlling shareholders and actual controllers of listed companies do not change. The deal the former controlling shareholders of listed companies and their concerted action of Jiangnan chemical combined shareholding of 46.64%, regardless of supporting and financing case, Jiangnan chemical controlling shareholders and their concerted action who rises to about 59.8%, consider supporting the financing case, assuming the issue price for the issue price, about 47.41% per share.

Statistics show that anxin energy company shield was founded in April 2011, wind farms, photovoltaic power plant is a professional engaged in the development, construction, operations and renewable energy equipment development and manufacturing business. In the Inner Mongolia, Xinjiang, Ningxia, Guizhou, Gansu, set up a number of regional companies, has acquired nearly 70 million-kilowatt of high quality wind resources, established nearly 200 wind towers and multi-metering equipment to measure wind, light resource projects over more than 10 provinces throughout the country, basically completed the development of industrial layout.

Also, shield anxin energy set wind electric equipment of development manufacturing and the wind farm of development, and construction, and operation of full industry chain, operation scale constantly expanded of while, to wind farm, and PV power station run data for based, combined Internet + and cloud computing, technology, gradually established up set power forecast, and energy management, and production run management and video monitoring, function for one of new energy integrated management information platform, and using on operation process stroke electric unit mass data of storage, and analysis, and mining, Better to technology improvements and enhance the fan. Completeness of the industry chain and the virtuous cycle of size, technology, ensure that the target company in the new field of energy sustained competitiveness and good development potential.

There are bright spots in this asset-buying programme. In addition to controlling shareholders outside the stock price is higher than the company’s closing price before the suspension, to protect the interest of small investors, Shield security group also added a new “voluntary locking” and “performance pledge” two terms. According to listed company and trading other signed of purchase assets agreement, according to pre valuation, compensation obligations people preliminary commitment standard of company 2017 degrees, and 2018 degrees, and 2019 degrees and the 2020 degrees deduction non-regular profit and loss Hou belonging Yu mother company of net profit will not below 142 million Yuan, and 243 million Yuan, and 347 million Yuan and 436 million Yuan, four years cumulative deduction non-regular profit and loss Hou belonging Yu mother company of net profit not below 1.168 billion yuan.

While, shield Ann holding group limited commitment for this times trading made of South chemical of shares, since this times issued of shares listed of day up 48 months within not for transfer; if this times trading completed Hou 6 months within South chemical stock continuous 20 a day of closing below price, or this times trading completed Hou 6 months final South chemical closing below price of, its for this times trading made of South chemical shares of lock regularly automatically extended 6 months.

Jiangnan chemical said, according to the assessment predicted that 2017-net profit of the company (combined size) 142 million Yuan, corresponding to dynamic 28.03 times forward earnings of 3.98 billion yuan, down new energy listed companies averaged 56.29 price-earnings ratio of the power industry.

After the acquisition is completed, the listed companies will enter the field of environmental protection, renewable energy, relying on the advanced wind turbine manufacturing technology, a wealth of new energy management experience as well as high quality wind resources, light, Jiangnan chemical through the strategic layout of new energy industry. Combined with the original explosive chemicals business continued to develop in the South, Jiangnan chemical will become a explosive business business dual-core-driven diversification and new energy listed companies.

It is worth noting that, in June 2014, the State Council issued the strategic action plan for energy development (2014-2020), pointed out that to develop wind power, by 2020 wind power installed capacity reached 200 million-kilowatt; to accelerating the development of solar power, by 2020 PV installed capacity up to 100 million-kilowatt per cent. In 2016, the national people’s Congress examined and adopted the national economic and social development of the 13th five-year plan, which States that should promote upgrading of the energy structure, and continue to promote the development of wind power, photovoltaic power generation, improving power generation such as wind, solar support policies.

Related industry people said, South chemical this times trading of pricing both has company and the small shareholders of interests, company while on people burst main for tapping increased effect, further stable and upgrade cash flow and gross margin; on the expand new field, layout more with future growth sex and market scale of new energy business, both industry transformation strategy and diversified strategy, highlights company and the big shareholders on restructuring Hou of South chemical of future development confidence full.

Original title: 3.98 billion rights issue to acquire new energy assets Jiangnan chemical transformation of “dual-core” drive

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