After the regulatory authorities issued a series of opinions and regulations on standardizing live broadcast delivery, Luo Yonghao’s live broadcast e-commerce business operator, Chengdu Xingkong Yewang Technology Co., Ltd. (hereinafter referred to as “Xingkong Yewang”), plans to land in the capital market was broken.
Sunway Co., Ltd. (Sunway, 603333) announced on the evening of December 3 that it would terminate the acquisition of 40.27% equity in Xingkong Yewang, the operator of Luo Yonghao’s live broadcast e-commerce business .
Regarding the termination of the acquisition, Sunway said after signing the relevant agreement, it will actively carry out due diligence, audit, and evaluation of the target company. In this process, the State Administration for Market Regulation issued the “Guiding Opinions on Strengthening the Supervision of Online Live Marketing Activities”, the State Administration of Radio and Television “Notice on Strengthening the Management of Online Shows and E-commerce Live Broadcasts” and the State Network Information Office issued the “Internet The Regulations on the Management of Live Marketing Information Content Services (Draft for Solicitation of Comments) (hereinafter referred to as the “New Regulations”) regulate the live marketing industry in terms of legal filing, marketing catalogs, and protection of minors. If the new regulations are officially implemented, it will have a greater impact on the development of the live broadcast industry where the target company is located.
Considering the above factors, Sunway and the target company’s shareholders re-examined and judged the core terms of the transaction’s valuation and pricing, profit forecast, and betting. , Discuss carefully, and finally failed to reach an agreement. In order to ensure the company’s interests, the two parties have decided to terminate the cash acquisition after careful consideration and friendly negotiation.
The acquisition was disclosed on November 8. At that time, the announcement stated that it intends to acquire 40.27% equity in Xingkong Yewang with its own and self-raised funds not exceeding 589,482,800. At the same time, Sunway’s shareholder Li Guangyuan transferred 25,995,300 shares of Sunway’s shares to Li Jun, Longquan Qianxiu Internet Partnership (Limited Partnership) and Kong Jianping through agreement transfer. Moreover, the above-mentioned cash acquisition and agreement transfer are mutually conditional. After the transaction, Xingkong Yewang will become a subsidiary of Sunway Holdings and be included in the scope of the consolidated statement.
After the announcement of the news, the stock price of Shangwei shares pulled three daily limit, from 7.27 yuan per share before the suspension, to a maximum of 10.1 yuan per share, an increase of nearly 40 %.
Shangwei Co., Ltd. held the 36th meeting of the fourth board of directors on December 3, 2020. It reviewed and approved the “Regarding the termination of the payment of cash to purchase Chengdu Xingkong Yewang Technology Co., Ltd. 40.27% equity and related party transactions.” The cash acquisition and the agreement transfer are mutually premised,After the termination of the purchase transaction, the transfer of the agreement is immediately terminated. The short-form equity change report issued by Li Jun, Kong Jianping and Longquan Qianxiu related to the transfer of the agreement and has been disclosed will subsequently become invalid.
According to public information, Sunway Co., Ltd., formerly known as Star Cable, is a high-tech enterprise specializing in the research and development, production, sales and service of special wires and cables. Li Guangsheng, the actual controller, landed on the Shanghai Stock Exchange on May 7, 2012.
On December 3, Shangwei shares fell sharply by 5.29% and closed at 6.81 yuan per share.