HONG KONG, May 9, 2014 - (ACN Newswire) - ZMFY Automobile Glass Services Limited ("ZMFY" or "the Group;" stock code: 8135), an automobile glass installation/repair service provider in China, has announced that Xinyi Automobile Glass (BVI) Company Limited ("Xinyi Glass (BVI)"), a wholly-owned subsidiary of one of the Group's major shareholders Xinyi Glass Holdings Limited ("Xinyi Glass;" stock code: 868) will further increase its shareholding in ZMFY to 29.17%. Moreover, the Group has also announced that it has entered into a memorandum of understanding ("MOU") with Polaron Solartech Corp. ("Polaron Solartech"), a Canadian company engaged in the provision of installation service of solar system, to facilitate the expansion of its own solar system installation business in China.
According to the share subscription agreement, Xinyi Glass (BVI) will subscribe 80,000,000 ordinary shares ("subscription shares") of ZMFY at a price of HK$0.55 per subscription share. Upon the completion of the subscription, the shareholding of Xinyi Glass (BVI) in ZMFY would increase from 15% to 29.17%. The estimated net proceeds of approximately HK$43,400,000 will be partially used to support the Group's solar system installation project.
In view of the favourable trend of increasing market demand for solar system modules, the Group intends to enter the solar system installation business. To facilitate the development of this new business, a wholly-owned subsidiary of ZMFY, Yu Sheng Investments Limited has entered into a MOU with Polaron Solartech in relation to the proposed subscription of a 49% shareholding interest in Polaron Solartech on 8 May 2014.
Polaron Solartech is a well-established solar system solution provider providing turnkey solutions in Canada. Leveraging its advanced technologies and expertise, Polaron Solartech is able to deliver quality solar system installation service at competitive prices. The management believes that the investment can strengthen the Group's solar system installation business in China and improve its quality of service by sharing the resources and know-how of Polaron Solartech.
Ms. Xia Lu, Executive Director and CEO of ZMFY, said, "Apart from developing the solar system installation business, we will also actively expand our service network in China to seize the demand for automobile glass installation and repair services. We will continue to evaluate appropriate M&A and business cooperation opportunities with the aim to create stable and promising long-term returns for our shareholders."
Details of Subscription of Shares by Xinyi Glass (BVI)
Subscription Price: HK$0.55 to be paid by cash
Number of Subscription Shares:
-- 80,000,000 subscription shares
-- Equivalent to 20% of the Group's issued share capital and 16.7% of the Group's enlarged issued share capital by the allotment and issuance of subscription shares on 28 March 2014
Estimated Net Proceeds: Approximately HK$43,400,000 in total
Use of Proceeds: Supporting the solar system installation project and general working capital for business development
Shareholding Structure Before and After the Subscription
---------------------------------------------------------------------------
Shareholder Number of Shares % Number of Shares %
before Subscription after Subscription
---------------------------------------------------------------------------
Lu Yu* 220,000,000 55.00 220,000,000 45.83
---------------------------------------------------------------------------
Xinyi Glass 60,000,000 15.00 140,000,000 29.17
(BVI)
---------------------------------------------------------------------------
Public 120,000,000 30.00 120,000,000 25.00
Shareholders
---------------------------------------------------------------------------
Total 400,000,000 100.00 480,000,000 100.00
---------------------------------------------------------------------------
*The shares are held by Lu Yu, which is wholly and beneficially owned by Ms. Natsu Kumiko, a Non-Executive Director and Controlling Shareholder.
Contact:
Strategic Financial Relations Limited
Joanne Lam
+852 2864 4816/ 9839 6552
joanne.lam@sprg.com.hk
Cornia Chui
+852 2864 4853/ 9855 8871
cornia.chui@sprg.com.hk
Becky Liu
+852 2864 4864/ 5363 2068
becky.liu@sprg.com.hk
Website: http://www.sprg.asia/hk
Topic: Press release summary
Source: ZMFY Automobile Glass Services Limited
Sectors: Daily Finance, Energy, Alternatives, Daily News, Alternative Energy
https://www.acnnewswire.com
From the Asia Corporate News Network
Copyright © 2024 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.
|
