Yongjie New Materials: Plans to acquire approximately $175 million worth of 100% equity in Okenik Qinhuangdao and 95% equity in Okenik Kunshan

Mars Finance News, April 19—Yongjie New Materials has released a draft report on a major asset purchase. The company plans to purchase, by paying cash, 100% of the equity interest in Aokeningke ( China ) Investment Co., Ltd. held by Aokeningke ( Qinhuangdao ) Aluminum Co., Ltd., and 95% of the equity interest in Aokeningke ( Kunshan ) Aluminum Co., Ltd., both held by Aokeningke China Investment Co., Ltd. The transaction consideration will be paid as RMB amounts equivalent to US$8,600 million and US$8,900 million, respectively, and an additional payment will be made involving approximately US$6,120 million in Ford profit-sharing shares.

The predecessor entities of the target companies were both core manufacturing bases of U.S. Aluminum in China. Aokeningke Qinhuangdao ’s main products include aluminum can body materials, materials for lithium batteries, car body panel materials, and other commercial transportation and industrial aluminum sheets. Aokeningke Kunshan ’s main products are high-end thermal management materials for automotive and diversified industrial end markets. The industry, principal business, and business scope of the assets to be acquired are the same as those of the listed company. After completion of this transaction, the listed company’s production capacity will be rapidly and significantly increased, and scale effects will be markedly enhanced.

This transaction constitutes a major asset restructuring.