Weifang Will Integrate Microfiber Leather Industry Resources
Mar 22, 2023
In a recent reply to the attention letter from Shenzhen Stock Exchange, Tongda disclosed that Weifang Financial Holding Group Co., Ltd. implemented this transaction and intends to obtain control of a listed company based on its relatively good understanding of the industry and long-term prospects. Through the acquisition of Tongda shares in local leading enterprises, it can use the listed company platform to integrate microfiber leather industry resources and support the development of local economy in the future.
According to the "Share Transfer Framework Agreement" signed by Weifang Financial Holding and Shandong Tongda Group Co., Ltd., the controlling shareholder of Tongda Group, on June 10, 2021, Weifang Financial Holding plans to acquire 7.2952 million shares of the listed company held by Tongda Group (accounting for 8.22% of the total share capital of the listed company), and Tongda Group unconditionally transfers its non property rights such as voting rights and proposal rights corresponding to 19.3359 million shares of the listed company held by Tongda Group (accounting for 21.78% of the total share capital of the listed company) Exclusive and irrevocable authorization to Weifang Financial Holding. After the completion of this transaction, Weifang Financial Holding holds a total of 29.99% of the voting rights corresponding to the shares of the listed company, and will become the controlling shareholder of the listed company. Weifang Municipal Government Investment and Financing Management Center (formerly known as Weifang Municipal State-owned Assets Operation Center) will become the actual controller of the same large share.
According to data, Weifang Financial Holding is a state-owned company approved by the Weifang Municipal People's Government for establishment, and its existing shareholders are the Weifang Municipal Government Investment and Financing Management Center and the Weifang Municipal State-owned Assets Supervision and Administration Commission.
Regarding the reasons for implementing this transaction and obtaining control of a listed company, Weifang Financial Holding stated that by acquiring the same major stake in a local leading enterprise, it could integrate microfiber leather industry resources through the platform of a listed company in the future to support the development of local economy. "Weifang Financial Holding plans to effectively integrate its high-quality industrial resources using the platform of listed companies, further improve the asset quality, sustainable operation ability, and profitability of listed companies, and achieve the preservation and appreciation of state-owned capital."
