Chuanyi Automation: Control change imminent as share transfer progresses

Chongqing Chuanyi Automation (SSE:603100) announced progress in its control shift, with China National Machinery Industry Corporation (Sinomach) poised to take over as the controlling shareholder. The deal involves Sinomach subsidiary, Sinomach Instrument, acquiring 98,841,678 shares (19.26% of total shares) from the current controlling shareholder, Four-link Group, plus entrusted voting rights for an additional 54,668,322 shares (10.65% of total voting rights) from YuFu Holding. After completion, Sinomach Instrument will control voting rights for 153,510,000 shares (29.91% of total). Four-link Group will retain voting rights for 96,036,355 shares (18.71%). The change in control is subject to regulatory approvals, including clearances from the State-owned Assets Supervision and Administration Commission (SASAC) and anti-trust authorities. Sinomach Instrument will place CNY 2,392,584,200 in escrow for the share transfer and provide a CNY 110,000,000 security deposit for the voting rights agreement.