Jiangnan Red Arrow: Asset restructuring was approved by the State-owned Assets Supervision and Administration Commission

Abstract On February 19, 2013, the company announced that the company's major asset restructuring plan was approved by the State-owned Assets Supervision and Administration Commission of the State Council. The company intends to issue a total of 100% of the shares of Zhongnan Diamonds to the specific target at a price of not less than 9.68 yuan / share, and the 100% equity of Zhongnan Diamond...
Announced on February 19, 2013, the company's major asset restructuring plan was approved by the State-owned Assets Supervision and Administration Commission of the State Council. The company intends to issue a total of 100% of the shares of Zhongnan Diamonds at a price of not less than 9.68 yuan per share. The estimated value of 100% equity of Zhongnan Diamond is about 4 billion yuan, and the estimated value-added rate is about 218.77%. Based on this calculation, the number of shares issued by Zhongnan Diamond in this issue of shares is approximately 413 million shares. At the same time, the company raises matching funds to non-public offering of shares to specific investors.

The company's main business is engine parts manufacturing. The gross profit of the products has been at a low level and its profitability is weak. This transaction will inject the equity of Zhongnan Diamond into Jiangnan Red Arrow on the basis of retaining the original business of Jiangnan Red Arrow. Zhongnan Diamond has developed into a leading enterprise in the domestic superhard materials industry and the world's largest manufacturer of synthetic diamonds. It has a certain scale and competitive advantages in the industry. The net profit in 2010 and 2011 is 334,286,300 yuan and 389,642,200 yuan respectively. Strong, after the completion of the restructuring, the listed company will become a high-quality listed company with considerable scale and industry competitive advantage. This restructuring will fundamentally improve the asset quality of listed companies and improve the profitability and sustainable development capabilities of listed companies.

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