Solargiga and Motech Create Joint Venture to Produce Solar Modules

Published on 17 Nov 2015
Solargiga Energy  Motech Industries 
The Board is pleased to announce that Jinzhou Jinmao, Motech Suzhou and the Target Subsidiary entered into the Capital Injection Agreement, pursuant to which Jinzhou Jinmao and Motech Suzhou agreed to inject a capital of RMB8.6 million and RMB11.4 million, respectively, into the Target Subsidiary by way of cash contribution. Upon completion of the Capital Injection, the Target Subsidiary will be held as to 81% by Jinzhou Jinmao and 19% by Motech Suzhou.

Since the applicable percentage ratio (as defined in the Listing Rules) in respect of the capital injection of RMB8.6 million by Jinzhou Jinmao into the Target Subsidiary, when aggregated with the capital contribution of RMB40 million by Jinzhou Jinmao upon establishment of the Target Subsidiary on 26 October 2015 pursuant to Rule 14.22 of the Listing Rules, exceeds 5% but does not exceed 25%, the capital injection of an aggregate amount of RMB48.6 million into the Target Subsidiary by Jinzhou Jinmao will therefore constitute a discloseable transaction for the Company under the Listing Rules. On the other hand, following the completion of the Capital Injection, the Company’s interest in the Target Subsidiary will be diluted and the capital injection of RMB11.4 million into the Target Subsidiary by Motech Suzhou constitutes a deemed disposal pursuant to Rule 14.29 of the Listing Rules. As none of the applicable percentage ratios (as defined in the Listing Rules) in respect of such capital injection by Motech Suzhou exceed 5%, such capital injection does not constitute a discloseable transaction of the Company under the Listing Rules.

Under the terms of the Capital Injection Agreement, Jinzhou Jinmao and Motech Suzhou agreed to inject a capital of RMB8.6 million and RMB11.4 million, respectively, into the Target Subsidiary by way of cash contribution. The amount of the Capital Injection was determined after arm’s length negotiation between Jinzhou Jinmao and Motech Suzhou with reference to the estimated funding and general working capital required for the operation of the Target Subsidiary for the purposes described in the section headed “Reason for and the Benefits of the Capital Injection” below. Upon completion of the Capital Injection, the Target Subsidiary will be held as to 81% by Jinzhou Jinmao and 19% by Motech Suzhou and the total registered capital of the Target Subsidiary will be increased from RMB40 million to RMB60 million. The amount of the Capital Injection in the amount of RMB8.6 million to be contributed by Jinzhou Jinmao will be funded by the Group’s internal resources. Completion Completion of the Capital Injection shall take place within 30 days from the date of the Capital Injection Agreement. Pursuant to the Capital Injection Agreement, after completion of the Capital Injection, the board of directors of the Target Subsidiary shall consist of five members, four of whom shall be nominated by Jinzhou Jinmao and the remaining director shall be nominated by Motech Suzhou.


Source: Solargiga
ENF Profiles For Companies Mentioned in This Article

Solargiga Energy (Solar Materials): https://www.enfsolar.com/directory/material/2778
Motech Industries (Solar Materials): https://www.enfsolar.com/directory/material/2389
Motech Industries (Solar Panels): https://www.enfsolar.com/directory/panel/2389
Motech Industries (Solar Components): https://www.enfsolar.com/directory/component/2389
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