Nanda Optoelectronics plans to acquire part of Feiyuan Gases' equity to expand its electronic specialty gas business

Recently, Nanda Optoelectronics decided to acquire 57.97% of Feiyuan Gas’ equity through cash and capital increase in order to develop its electronic specialty gas business. After the transaction is completed, Feiyuan Gas will become a holding subsidiary of Nanda Optoelectronics…

Yesterday, electronic materials manufacturer Nanjing Optoelectronics issued an announcement stating that in order to optimize resource allocation and enhance the company's profitability, it plans to acquire 57.97% of the equity of Shandong Feiyuan Gas Co., Ltd. (hereinafter referred to as "Feiyuan Gas") through cash acquisition and capital increase.

The announcement shows that the equity transfer and capital increase transaction is divided into two parts:

  The first part is that the company acquired 17.07% of Feiyuan Gas’ equity before the transaction held by Shandong Huantai Lutai Road Engineering Co., Ltd. at a price of RMB 36.85 million;

 The second part is the company's subscription of 626.86567 million yuan of Feiyuan Gas's newly increased registered capital at a price of 210 million yuan. Of this capital increase, 626.86567 million yuan was included in Feiyuan Gas's registered capital, and the rest was included in Feiyuan Gas's capital reserve.

It is reported that Nanjing University of Science and Technology Optoelectronics invested a total of 246.85 million yuan in cash this time.

After the completion of this transaction, Feiyuan Gas' registered capital will be changed to RMB 127,110,367, and Nanda Optoelectronics will hold 57.97% of the shares of Feiyuan Gas (corresponding to Feiyuan Gas' registered capital of RMB 73,686,567 after this transaction), and Feiyuan Gas will become a wholly-owned subsidiary of Nanda Optoelectronics.

As the acquired company, Feiyuan Gas is the only private enterprise among the major domestic NF3 suppliers. It has achieved certain results in the preparation, filling, safe production, quality control, and safe transportation of NF3 products. Its team has 20 years of experience in fluorine chemical engineering, and has the cost-cutting and efficiency-increasing capabilities of a startup company and the latecomer advantage in technology. Its initial investment, cost control, and continuous product technology innovation capabilities are highly competitive. In addition, Feiyuan Gas has completed the industrialization preparations for a variety of key fluorine-containing electronic materials.

Nanda Optoelectronics believes that it and Feiyuan Gas have strong synergies in the areas of customers, technology, management, capital, etc. This transaction will greatly enhance the core competitiveness of Feiyuan Gas, and also has important strategic value for the layout and development of Nanda Optoelectronics' electronic specialty gas business.

By investing in and acquiring Feiyuan Gas, Nanjing University of Science and Technology Optoelectronics will quickly enter the fluorine-based electronic specialty gas market, taking a solid step towards completing its electronic specialty gas industry layout.