374 million yuan to transfer 13.13% of the shares Nanhai Holdings intends to enter the ownership of Nanfeng shares

Source: Shanghai Securities News

On the evening of January 4, Nanfeng Co., Ltd. announced that Guangdong Nanhai Holdings Investment Co., Ltd. (hereinafter referred to as "Nanhai Holdings") intends to transfer 63 million shares of the company held by Yang Zijiang and Yang Zewen, the controlling shareholder and actual controller of the company, and Qiu Yunlong, a shareholder holding more than 5% of the shares, at a price of 5.94 yuan per share, accounting for 13.13% of the total share capital of the company. The total transaction price is approximately $374 million.

It is reported that the transfer of this agreement is the second increase in Nanfeng shares of Nanfeng after more than 1 year. Prior to this, Nanhai Holdings had twice raised its nanfeng shares in the secondary market from June 2019 to May 2020. After the completion of this transaction, the shareholding ratio of Nanhai Holdings will increase from 12.59% to 25.71%, and the control of Nanfeng shares will be obtained, and the State-owned Assets Supervision and Administration Bureau of Nanhai District of Foshan City will become the actual controller of Nanfeng shares.

According to the data, Nanhai Holdings is one of the largest group holding enterprises in the state-owned assets system of Nanhai District, Foshan City, and its business mainly includes three major sectors: electricity sales and steam supply (steam), gas supply and environmental protection business. The State-owned Assets Supervision and Administration Bureau of Nanhai District of Foshan City and the Department of Finance of Guangdong Province hold 90% and 10% of the shares of Nanhai Holdings respectively.

According to the detailed equity change report, Nanhai Holdings' foreign-invested enterprises involve a number of fields, such as Foshan Nanhai (Tobacco) Economic Development Co., Ltd. and Guangdong Nanhai Automobile Co., Ltd. Specific to the level of domestic and foreign listed companies, Nanhai Holdings currently holds 31.86% of the equity of the A-share listed company Grand Blue Environment, and the 71.41% equity of China Industrial Holdings, a Hong Kong-listed company.

Nanhai Holdings said that based on its recognition of the value of Nanfeng shares and its good development prospects, it obtained control of the listed company through this equity change. In the next 12 months, in addition to this equity change, the company will not rule out the opportunity to continue to increase the shares of the listed company according to the overall situation of the securities market and the operation and development of the listed company.

At the same time, Nanhai Holdings said that the company has no plans to change the main business of Nanfeng Shares or make major adjustments to the main business of listed companies in the next 12 months, nor does it have any plans to sell, merge, joint venture or cooperate with others on the assets and business of Nanfeng Shares or its subsidiaries, or a restructuring plan to purchase or replace assets.

It is reported that Nanfeng Co., Ltd. is mainly engaged in ventilation and air treatment systems, heavy metal 3D printing technology research and development, production, sales, business is mainly for nuclear power, subway, tunnel, large civil buildings and other fields. In the first three quarters of 2021, Nanfeng achieved operating income of 610 million yuan and net profit loss attributable to shareholders of listed companies of 57.958 million yuan.