Nbtm New Materials to acquire remaining stake in subsidiary

Nbtm New Materials Group Co., Ltd. (Nbtm) is acquiring the remaining 34.75% equity in Shanghai Fuchi High-Tech Co., Ltd. (Shanghai Fuchi) for 73,462.54 million yuan, increasing Nbtm's stake to 99%. The acquisition involves issuing shares and making cash payments to five counterparties.

The transaction includes raising supporting funds of up to 54,782.33 million yuan from no more than 35 specific investors. These funds will be used to pay the cash consideration for the asset acquisition (18,680.21 million yuan) and for the "High-Strength Lightweight MIM Parts and Modules Production Line Technology Upgrades and Capacity Expansion Project" (36,102.12 million yuan). The issuance price for shares is 14.69 yuan per share.

The deal aims to reinforce Nbtm's strategic position in MIM technology, bolster its core competitiveness by leveraging complementary and synergistic effects of powder metallurgy and metal injection molding, and support Shanghai Fuchi's continued profitability, which started in 2024. The overall transaction is not expected to dilute Nbtm's earnings per share.