Longi Environmental Protection: Longyan State Investment plans to increase its stake in the company by 50 million to 100 million yuan

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(Source: Caowen)

          At the same time, this share increase plan does not trigger a tender offer, and will not result in any change to the company’s controlling shareholder or actual controller. The company will continue to monitor the progress of this share increase plan and fulfill its information disclosure obligations in a timely manner.            

On April 2, Longjing Environmental Protection (600388.SH) released an announcement stating that a shareholder holding more than 5% of the company’s shares, Longyan City State-owned Assets Investment and Operation Co., Ltd., plans to increase its holdings of the company’s shares.

According to the information disclosed in the announcement, Longyan Guotou currently directly holds 112 million shares of the company, accounting for 8.82% of the company’s total share capital. At the same time, Longyan Guotou and its persons acting in concert, Longyan Huasheng Enterprise Investment Co., Ltd., together hold 113 million shares of the company, accounting for 8.92% of the company’s total share capital.

This share increase plan shows that Longyan Guotou intends to increase its holdings of the company’s A-shares through the centralized bidding trading method via the trading system of the Shanghai Stock Exchange within 12 months from the date of disclosure of this announcement. The total amount of the increase will be no less than RMB 50 million and no more than RMB 100 million. The source of funds for the increase includes special bank loans and its own funds. In this regard, CITIC Bank has agreed to provide special loan support of up to RMB 90 million, and the loan term will be no more than 3 years. The reason for the increase is based on confidence in the company’s future sustained and stable development and recognition of its long-term investment value, with the aim of enhancing investors’ confidence.

The announcement also notes that this share increase plan may have risks that could cause the implementation of the plan to fail to achieve expectations due to changes in capital market conditions or other risk factors that cannot be predicted at present. Meanwhile, this share increase plan does not trigger a tender offer, and will not result in any change to the company’s controlling shareholder or actual controller. The company will continue to monitor the progress of this share increase plan and fulfill its information disclosure obligations in a timely manner.

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