Shanghai DZH Update: Xiangcai Securities acquisition plans revealed

Xiangcai Company Limited, an SSE-listed company primarily engaged in securities services, will acquire Shanghai DZH Limited, a financial information service provider. This will be a share-exchange merger, with Shanghai DZH's shareholders receiving 1.27 Xiangcai shares for each Shanghai DZH share, based on the average trading price over 120 trading days prior to the pricing base date of March 28, 2025. Xiangcai is raising up to RMB 80.00 million in supporting funds.

The transaction is a related party transaction, as Xiangcai currently holds more than 5% of Shanghai DZH's shares. After the merger, Shanghai DZH will be delisted, and Xiangcai will assume all of Shanghai DZH's assets, liabilities, business, personnel, and qualifications. The merger aims to enhance the combined entity's financial technology capabilities and comprehensive financial service offerings.

Shanghai DZH has confirmed that it has no purchases or sales of assets exceeding relevant thresholds in the 12 months prior to the transaction that would need to be included in the cumulative calculation of relevant indicators for this transaction. The independent financial advisors for both companies have confirmed the fairness and reasonableness of the valuation.