Unigroup Guoxin plans to acquire Linxens for RMB 18 billion

A few days ago, Unigroup Guoxin announced that the company plans to purchase 100% of the equity of Beijing Unigroup Liansheng Technology Co., Ltd. (hereinafter referred to as "Unigroup Liansheng") held by Tibet Unigroup Shencai Investment Co., Ltd., Tibet Zijin Haikuo Technology Development Co., Ltd., Tibet Zijin Haiyue Electronic Technology Co., Ltd., Red Maple Capital Investment Management Co., Ltd. and Ningbo Meishan Free Trade Zone Xinhua Equity Investment Management Co., Ltd.

After the completion of this transaction, Unisplendour will be included in the consolidated financial statements of the listed company. It is reported that Unisplendour is a holding company established in 2018 to acquire Linxens related assets. Linxens has operating entities in France, Germany, Singapore, Thailand, China and other countries. Linxens' main business is the design and production of smart security chip micro connectors, RFID inlays and antennas, and ultra-thin flexible LED light strips. It is one of the world's largest manufacturers of smart security chip components. Linxens and Unisplendour's security chip business are upstream and downstream of the industrial chain and have strong synergy effects.

On June 2, Unigroup Guoxin disclosed that the price of the target assets for this acquisition was initially agreed to be RMB 1800 million, and the audit and evaluation of the target assets have not yet been completed, and the entire acquisition is still in progress. Upon application, Unigroup Guoxin's stock will resume trading from the opening of the market on June 3.

It is worth noting that in the second half of last year, Unigroup Guoxin transferred 100% of the equity of Xi'an Unigroup Guoxin Semiconductor Co., Ltd. (hereinafter referred to as "Xi'an Unigroup Guoxin") to Beijing Unigroup Storage Technology Co., Ltd. (hereinafter referred to as "Unigroup Storage"), a wholly-owned subsidiary of the controlling shareholder Unigroup. The transaction price was determined to be RMB 220.09 million after negotiation between the two parties. After the completion of this transfer, Unigroup Guoxin will no longer hold shares in Xi'an Unigroup Guoxin.

However, as of today, the related-party transaction has not yet been submitted to Ziguang Zhanrui's shareholders' meeting for deliberation.

Unigroup Guoxin announced that in order to facilitate subsequent business cooperation with Xi'an Unigroup Guoxin, it plans to adjust the above equity transfer plan, changing the original transfer of 100% equity of Xi'an Unigroup Guoxin to a transfer of 76% equity to Unigroup Storage.

The transaction price is based on the results of the equity valuation of Xi'an Ziguang Guoxin and was determined to be RMB 167,777,600 after negotiation between the two parties. After the completion of this equity transfer, the company still holds 24% of the equity of Xi'an Ziguang Guoxin, which will no longer be included in the company's consolidated financial statements. The counterparty, Ziguang Storage, is a wholly-owned subsidiary of Ziguang Group, the company's indirect controlling shareholder, and is a related legal person of the company. Therefore, this transaction constitutes a related transaction.

Unigroup Guoxin said that this equity transfer can reduce the capital investment pressure of the listed company, improve its financial status and profitability, and is conducive to the subsequent development of Xi'an Unigroup Guoxin. After the equity transfer is completed, the company holds 24% of the equity of Xi'an Unigroup Guoxin and will no longer include it in the scope of consolidated financial statements. The company will focus on the field of security chip design and strive to become a "security chip leader", which is in line with the company's development strategy.