AVIC Securities greenlights Shu Dao Investment's Sichuan Hongda tender offer

AVIC Securities, acting as financial advisor for Shu Dao Investment Group Co., Ltd.'s tender offer for Sichuan Hongda Co., Ltd., has issued its continuous supervision opinion for the first half of 2025 (January 1 to June 30). The report confirms that the acquiring entity and Sichuan Hongda have operated in accordance with Chinese securities regulations and Shanghai Stock Exchange listing rules.

The tender offer, which completed clearance procedures by December 11, 2024, involved Shu Dao Investment Group, directly and indirectly through Hongda Industrial, holding 536,314,805 shares, representing 26.39% of the total share capital. Including shares held by parties acting in concert, Shu Dao controls 636,314,805 shares, or 31.31% of Sichuan Hongda’s total share capital, triggering a full tender offer obligation. The offer price was 4.55 yuan per share for 1,395,762,595 shares, representing 68.69% of the company's total share capital.

The opinion confirms that Shu Dao Investment Group and related parties have adhered to their public commitments regarding independence, avoiding horizontal competition, and related party transactions. Furthermore, no major changes to Sichuan Hongda's main business, asset restructuring, employee hiring plans, or dividend policies have been made during the supervision period. The acquiring entity has also fulfilled all reporting and disclosure obligations related to the tender offer.