Wanda Auto's Acquisition of Praise Shares Becomes Its Largest Shareholder

The US-listed Wonder Auto Technology (Inc.) announced on the 20th that it had acquired the 38.36% stake in Applaud Group Limited through its two wholly-owned subsidiary companies, becoming the highest praise for the company. shareholder.

In the statement, Wonder said that its wholly-owned subsidiary Wonder Auto Limited entered into a share purchase agreement with Novophalt on the 18th to acquire a 20.9% stake in the latter’s praise company. On the same day, another wholly owned subsidiary, Wondercity Limited, and Wonder Employee Capital Limited also entered into a share purchase agreement to acquire 17.46% of the praise company held by the latter for HK$52.535 million. Both transactions will be completed by February 15th and will be settled at the exchange rate of the Hong Kong dollar against the US dollar announced by the People's Bank of China on that day.

After the transaction is reached, Wonder will hold a total of 38.36% of the company's shares and become the largest shareholder of the praise. At the same time, as the company holds 52.2% of Jinheng Automotive Safety Technology Holdings Limited, Wande will indirectly hold 20.02% of the shares of Jinheng after the acquisition.

For the acquisition, Yuan Meirong, chief financial officer of Wonder Automotive Technology Co., Ltd. believes that with the growing maturity of the Chinese automotive industry and the continuous improvement of consumer safety performance requirements, passive safety restraint systems are expected to become China's auto OEMs. Commercial compulsory equipment. As a leader in automotive passive safety restraint systems, Jinheng has a very good profit prospects. By taking stakes in Jinheng, Wonder Automotive will also have great potential for development. Yuan Meirong expects that after the acquisition, Wande’s sales channels will cover 90% of China's domestic OEMs.

Yuan Meirong also said that this acquisition will enhance the sharing of resources between the two sides, increase product added value, improve product quality, complement each other with technological advantages, and expand market share, so as to achieve a win-win situation.

Wande Automotive Technology Co., Ltd. is a leading supplier of China's automotive generator starter industry. It has more than 10 years of experience in the manufacture of automotive generator starters. In 2006, its production capacity was 3 million units. Wonder has a strong technical force and research and development capabilities, the pursuit of technological leadership and total cost leadership strategy in order to maintain a competitive advantage in the automotive industry. The company has established a strategic partnership with South Korea’s Hivron Automotive Electronics to jointly develop advanced automotive electronics technologies and products.

Jinheng Automotive Safety Technology Holdings Co., Ltd. is a high-tech auto parts company listed on the Hong Kong Stock Exchange. Its main business is automotive passive safety restraint systems (airbags and seat belts series) and automotive engine electronic injection management systems (EMS). ) And diesel engine related parts manufacturing and sales.