IKD acquires ZEB PRECISION, strengthens auto parts market

IKD, a company listed on the Shanghai Stock Exchange, announced the acquisition of a 71% stake in ZEB PRECISION (Ningbo) Fine Electrical Machinery Co., Ltd. through a combination of share issuance and cash payments. The transaction is valued at CNY 1.118 bn, comprising CNY 615.037 m in shares and CNY 503.212 m in cash. The share issuance price is CNY 13.70 per share, adjusted from CNY 14.00 per share due to a 2024 annual dividend distribution. This acquisition is part of a broader strategy to boost IKD’s revenue and net profit, with ZEB PRECISION’s 2025 net profit expected to be no less than CNY 14,150.00.

The acquisition is complemented by a concurrent private placement of shares to no more than 35 eligible investors, aiming to raise up to CNY 52,000.00 for the cash component of the acquisition and related expenses. This fundraising is conditional on the successful share issuance for asset acquisition. The transaction is not considered a major asset reorganization or a back-door listing and aligns with national industrial policies, including environmental protection and anti-monopoly regulations. Independent financial advisors confirmed the fairness and reasonableness of the transaction's valuation.

The transaction is projected to increase IKD’s total assets, net assets, and net profit by approximately 15.67%, 11.66%, and 15.83%, respectively, based on pro forma financial data for 2024. The deal is expected to enhance IKD's market competitiveness and sustainable development by integrating ZEB PRECISION’s micro-motor precision component expertise and customer resources.