Risun Group eyes stake in SinoHytec via asset disposal

China Risun Group (HKEX:1907) announced its subsidiary, Risun Group, entered a framework agreement with Beijing SinoHytec involving a potential disposal and capital increase. Risun Group intends to dispose of its entire equity interest in Dingzhou Risun Hydrogen Energy to Beijing SinoHytec in exchange for SinoHytec shares priced at RMB18.53 each. Concurrently, Risun Group plans to subscribe to additional SinoHytec shares, up to RMB550 million, to bolster SinoHytec's capital. Upon completion, Risun Group anticipates becoming the controlling shareholder of SinoHytec while holding less than 30% of shares, through board control. The ultimate consideration will be determined by mutual agreement, referencing an independent asset appraisal. The company cautioned that the deal is not yet finalized and remains subject to further agreements.