Zhongli Group Plans Stake in CBAK Energy Technology
Xu Wei
DATE:  Feb 27 2018
/ SOURCE:  Yicai
Zhongli Group Plans Stake in CBAK Energy Technology Zhongli Group Plans Stake in CBAK Energy Technology

(Yicai Global) Feb. 27 -- Jiangsu Zhongli Group Co.'s plan to acquire new energy assets has made progress. The company intends to buy equity in CBAK Energy Technology Inc. from Shenzhen BAK Battery Co. and Tibet Haoze Trading Co. either in cash or by issuing shares. The transaction price may amount to USD1.6 billion (CNY10 billion), per preliminary estimates, Zhongli stated Feb. 24.

Zhongli Group has signed an agreement of intent on share purchase with Shenzhen BAK Battery and Tibet Haoze. The final target company's asset range is not yet fixed, and the parties will agree on the final transaction price after its appraisal by assessment agencies, per the statement.

Established in 1988, Zhongli Group mainly plies the cable, optical cable and solar power station businesses. The company reported operating income of CNY19 billion, up 67 percent, and net profit of CNY307 million last year in a threefold annual rise, the preliminary earnings estimate the company released yesterday shows. The main reason for last year's performance growth was the rapid implementation of the government's poverty-relief solar power panel installation initiative, the company said.

CBAK Energy Technology Co. is the first Chinese lithium-ion battery enterprise to list on the US NASDAQ stock exchange. Zhongli Group also recently announced a CNY300 million capital increase. The group will use its own and self-financed cash to up its investment in CBAK Energy Technology by that amount, it said Feb. 7. The former will afterwards hold a 2.93 percent stake in the latter.

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Keywords:   CBAK Energy,Jiangshu Zhongli Group,M&A