Beijing Junzheng shares hit daily limit, acquisition of ISSI major asset restructuring to be reviewed by the board tomorrow

On November 13, the three major A-share indices continued to fluctuate. The Shanghai Composite Index closed at 2905.24 points, down 0.33%, and the Shenzhen Component Index closed at 9687.85 points, up 0.18%. Most industry sectors were in the red, but the semiconductor sector had the largest increase. Among them, Beijing Junzheng once hit the daily limit. As of the close, it closed at 60.93 yuan per share, up 9.06%. According to news, this may be related to the review of Beijing Junzheng's major asset reorganization matters tomorrow.

       According to the Announcement of the 60th Working Meeting of the Merger and Acquisition Committee in 2019 issued by the China Securities Regulatory Commission, the China Securities Regulatory Commission's Listed Company Merger and Acquisition Review Committee (hereinafter referred to as the "Merger and Acquisition Review Committee") is scheduled to hold the 60th Merger and Acquisition Review Committee Working Meeting in 2019 at 9:00 am on November 14, 2019 to review Beijing Ingenic Integrated Circuit Co., Ltd.'s issuance of shares and payment of cash to purchase assets and raise supporting funds and related transactions. Beijing Ingenic has issued a "Letter of Commitment from the Merger and Acquisition Applicant to Guarantee Not to Affect and Interfere with the Review of the Merger and Acquisition Review Committee" to the Listed Company Supervision Department of the China Securities Regulatory Commission.

      According to the disclosure, the target of Beijing Junzheng's reorganization and acquisition this time is Beijing Sicheng (referred to as ISSI). According to the transaction plan, Beijing Junzheng and its wholly-owned subsidiary Hefei Junzheng will purchase 59.99% of the equity of Beijing Sicheng held by Yitong Investment, Huachuang Xinyuan, Shanghai Jinsi, Minhe Zhiwei, Shansheng Chuangxin, WM, AM, and Xiamen Xinhua, as well as 100% of the property shares of Shanghai Chengyu held by Wuyuefeng Jidian, Shanghai Jicen, Beijing Qinghe, Wanfeng Investment, and Chengyu Investment by issuing shares and paying cash, with a total transaction price of 7.2 billion yuan. After the completion of this acquisition, Beijing Junzheng will directly hold 59.99% of the equity of Beijing Sicheng, and indirectly hold 40.01% of the equity of Beijing Sicheng through Shanghai Chengyu, that is, directly and indirectly hold 100% of the equity of Beijing Sicheng.

      Beijing Junzheng stated that in order to safeguard the interests of the majority of investors and avoid causing abnormal fluctuations in the company's stock price, in accordance with the "Management Measures for Major Asset Restructuring of Listed Companies", "Guiding Opinions on Improving the Suspension and Resumption of Listing System of Listed Companies' Stocks" and other relevant regulations, the company's stock (stock name: Beijing Junzheng, stock code: 300223) will be suspended on November 14, 2019 (the day of the Mergers and Acquisitions and Restructuring Committee's working meeting), and after the review results of the Mergers and Acquisitions and Restructuring Committee are issued, the company will promptly fulfill its information disclosure obligations and apply for the resumption of trading of its stocks.