King Long Motors to acquire remaining 40% stake in subsidiary

Xiamen King Long Motor Group (SSE: 600686) announced plans to acquire the remaining 40% stake in its subsidiary, Xiamen King Long Travel Bus Co., Ltd., from Excelwin (Holdings) Company Limited ("Excelwin"). The deal, valued at RMB 408,919,960, will make King Long Travel Bus a wholly-owned subsidiary of King Long Motors. The transaction price is based on an independent valuation of King Long Travel Bus, which assessed the total shareholder equity at RMB 1,022,299,900 as of December 31, 2023. The acquisition is considered a related-party transaction as Excelwin holds a significant stake in the subsidiary. The deal is subject to shareholder approval and regulatory procedures. The payment will be made in installments, with the first payment of RMB 77,783,992 due within seven business days of the agreement’s effective date. A provision of RMB 2,000,000 has been made by Excelwin towards land transaction taxes related to certain properties used by the subsidiary.