Lei Jianping reported on March 24
Xiaomi today announced that it has entered into a shareholder-seller agreement with the shareholder seller, pursuant to which Xiaomi conditionally agreed to the acquisition and the shareholder seller conditionally agreed to sell the sale shares, which account for a total of 50.09% of Zimi's total issued share capital, for a total consideration of approximately US$200 million.
Approximately US$176 million was paid in cash and approximately US$28.45 million was paid off by Xiaomi in full for the payment of 8,670,924 Consideration Shares.
Xiaomi will allot and issue a total of 8,670,924 Consideration Shares to Zifone upon Delivery, equivalent to approximately 0.03% of Xiaomi's issued share capital as at the date of this announcement and approximately 0.03% of Xiaomi's issued share capital after the expansion of the Consideration Shares.
Before the transaction, Xiaomi CEO Lei Jun held 11.91% of Xiaomi's Class B shares, Lin Bin held 9.43% of Class B shares, after this transaction, Lei Jun held 11.91% of Class B shares, and Lin Bin held 9.42% of Class B shares.
Back in May 2020, Xiaomi Group announced the acquisition of a 27.44% stake in Zimi International Incorporation for $103 million. Of this amount, $25.78 million was paid in cash, with the remaining $77.06 million being repaid by 54,379,044 shares distributed by Xiaomi Group. Upon completion of the transaction, Xiaomi Group will own a 49.91% stake in Zimi International Incorporation. Shunwei Capital holds a 22.47% stake.
Xiaomi spent $100 million to buy Zimi's stake in 2020
Founded in 2012, Zimi became one of the members of the Xiaomi industrial ecological chain and was responsible for the research and development of Xiaomi mobile power supply and related accessories.
According to the announcement, Zimi's after-tax profits in 2019 and 2020 were 326 million yuan and 264 million yuan, respectively. It can be seen that the profit of purple rice has declined to a certain extent.
The directors of Xiaomi believe that the acquisition in 2021 provides a good opportunity for the Group. Zimi has technology and research and development capabilities in power supply and a number of IoT fields, which can improve Xiaomi's technical competitiveness in the field of 5G+AIoT. Zimi's technology in the field of power supply can be applied to Xiaomi's mobile phones and many other IoT products to improve the competitiveness of Xiaomi products.
In addition, standardize product power supplies to save costs. In addition, Zimi has excellent technical research and development capabilities and excellent industry resources and operational experience in a number of IoT fields, including power-related products, cameras and speakers, which can simultaneously collaborate and enhance the competitiveness of Xiaomi's future ecological chain products.
After this closing, Zimi will become a wholly-owned subsidiary of Xiaomi.
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