Zoomlion acquires 45% stake in Target for RMB904m

Changsha Zoomlion Heavy Industry Science and Technology Development Co. (HKEX:1157) announced it has entered into a sale and purchase agreement to acquire a 45% interest in an unnamed target company. The purchase price for this stake is RMB904,050,100, equivalent to approximately HKD985,630,758, paid in cash to Seller A. This connected transaction, as defined under Hong Kong Listing Rules, will increase Zoomlion's ownership in the Target to 64%, consolidating the Target's financials into Zoomlion's accounts. The acquisition is expected to enhance synergy between industry and finance, promote a digital management strategy and reduce related party transactions. The company will fund the cash consideration from its internal resources.