Sumec to acquire Lanke Hi-Tech stake in related-party deal

Sumec Corporation (SSE:600710) announced it will acquire 60 million shares of Gansu Lanke Petrochemical High-tech Equipment Co., Ltd. (Lanke Hi-Tech), representing 16.92% of its total share capital, from Sinomach Asset Management Co., Ltd. The transaction will occur via a non-public agreement transfer at a price of CNY 6.71 per share, totaling CNY 402.6 million, funded from Sumec's own capital. Following the acquisition, Sumec will hold 21.72% of Lanke Hi-Tech, making it a controlling subsidiary consolidated into Sumec's financial statements. The deal is subject to regulatory approvals and compliance checks by the Shanghai Stock Exchange. Both Sinomach Asset Management and Sumec have already completed their respective internal approval procedures. The company's shares rose slightly on news of the acquisition.