Zhongli Group's acquisition of BAK Power Battery is still in progress

In February of this year, Zhongli Group announced that it planned to purchase Shenzhen BAK power battery Co., Ltd. (hereinafter referred to as BAK Power) for a price of 10 billion yuan. For the head enterprise of this new energy battery industry, Zhongli Group can be described as a must-have. During the period of major asset restructuring, Zhongli Group has successively won part of the equity of BAK Power through capital increase and transfer of equity.

On May 5, Zhongli Group announced that the company intends to acquire a 3.41% stake in BAK Power held by Tibet Haoze Trading Co., Ltd. (hereinafter referred to as Tibet Haoze) for 350 million yuan. After the transaction is completed, the company holds the stake in BAK Power will increase from 4.88% to 8.29%.

Will become the fourth largest shareholder of BAK Power

According to the latest announcement, Zhongli Group intends to acquire a 3.41% stake in BAK Power held by Tibet Haoze for RMB 350 million. In fact, on February 5 this year, Zhongli Group suspended the planning of major asset restructuring, and the target was BAK. The company revealed in the subsequent suspension of the trading, it is expected that the transaction price will reach 10 billion yuan.

Last year, Changxin Technology planned to acquire a 75% stake in BAK Power for RMB 6.75 billion. Based on this price, the 100% equity of BAK Power was estimated at about 9 billion yuan.

According to the data, BAK Power is a new energy enterprise integrating lithium core battery, electric vehicle and battery recycling. According to the data of the third-party organization Lithium Research, in 2017, the Li Ke lithium battery installed 1.5GWh, accounting for 4.34% in the domestic market, ranking fifth, after the CATL, BYD, Wattmar and Guoxuan Hi-Tech. In 2017, BAKER achieved operating income of 3.05 billion yuan and net profit of 500 million yuan.

In fact, during the period of promoting major asset restructuring, Zhongli Group has successively invested in BAK Power through capital increase and transfer of equity. On February 7 this year, Zhongli Group acquired a 2.93% stake in BAK Power with its own capital of 300 million yuan through capital increase and share expansion. On April 3, Zhongli Group acquired Tibet Haoze for another 200 million yuan, the 1.95% stake in BAK Power.

After the completion of this transaction, the top four shareholders of BAK Power will be Shenzhen BAK Battery Co., Ltd. (holding 33.37%), Tibet Haoze (holding 17.66%), and Wuhu Changxin Technology Co., Ltd. Holding 8.34%), Zhongli Group (holding 8.29%).

It is worth mentioning that Zhongli Group is not a company in the new energy automobile industry chain. Its predecessor was Changshu Tangshi Cable Factory, whose main business is cable business, photovoltaic business and special communication equipment. Zhongli Group said that the company's further acquisition of BAKER's equity will help the company to expand the influence of the comparative power and deepen the layout of the new energy power battery industry.

Changxin Technology also had an acquisition plan

Since Zhongli Group is planning to acquire BAK, why will it be added in advance during the restructuring period? The reporter repeatedly called the telephone number of the Zhongli Group Securities Department, but it has not been able to connect.

“This shows that listed companies want to lock in equity.” An industry insider who has studied the mergers and acquisitions of listed companies has analyzed the reporters. On the one hand, major asset restructuring is usually completed through additional issuance and cash acquisition. The early listing of listed companies can prevent equity dilution. On the other hand, if a listed company wants to lock in the equity in advance, it can prevent a higher premium for the follow-up of the target. "As long as there is no premium in the middle of the transaction (the price of the transaction disclosed in the announcement), this is also a compliance."

"If it has already been announced, during the preparation period of the restructuring, there will be no problem," said Wang Zhibin, a lawyer at Shanghai Minglun Law Firm.

In 2017, another listed company, Changxin Technology, also increased its capital and then planned to acquire a 75% stake in BAK Power, but the final restructuring plan was not completed.

In March 2017, Changxin Technology disclosed plans to acquire RMB 77.5 billion for the 75% stake in BAK Power. Earlier, Changxin Technology had held a 9% stake in BAK Power through capital increase. However, on January 30 this year, Changxin Technology disclosed that it would no longer initiate restructuring and capital increase for the Beacon Power, on the grounds of the new situation in the new energy vehicle industry and the adjustment of the state's subsidy policy for new energy vehicles.

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