Nanxing Machinery Plans to Acquire 100% Stake in Integrated Internet Services Provider in Guangdong
Tang Shihua
/SOURCE : Yicai
Nanxing Machinery Plans to Acquire 100% Stake in Integrated Internet Services Provider in Guangdong

(Yicai Global) Aug. 21 -- Nanxing Machinery Co. [SHE:002757], which produces equipment for manufacturing plate furniture, will acquire all the equity of Guangdong Weiyi Network Technology Co., integrated internet services provider, via share issuance and cash payment in a bid to expand its business into the internet data center industry.

Nanxing held positive talks about the restructuring deal with existing and potential counterparties and signed a letter of intent, the Guangdong-based company said in a statement on Aug. 18.

Relevant work for the restructuring deal such as due diligence, audit and appraisal has not been completed yet, and the transaction plan is still under discussion, the statement added.

Guangdong Weiyi Network, the target company, operates in the internet data center (IDC) industry, and its controlling shareholder is Pingnan Weichuang Zhongcheng Equity Investment Partnership, whose actual controller is Wang Yujie, the statement said.

Per public information, Guangdong Weiyi Network is an IDC integrated service provider specializing in the provision of value-added services such as internet security and protection, cloud computing, cloud storage, content delivery network (CDN) acceleration, server rental and custody, and computer racks and big bandwidth rental.

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Keywords: Nanxing , M&A , Weiyi , IDC