Shandong Meichen to acquire majority stake in Hubei Dongmei

Shandong Meichen Ecology & Environment (SZSE:300237) announced plans to acquire a 32.68% equity stake in Hubei Dongmei Auto Parts Co., Ltd. from Qingdao Xichen Enterprise Management Partnership for RMB 11.67 million, using its own funds. Upon completion, Shandong Meichen will hold a direct 32.68% stake and, through its subsidiary Shandong Meichen Industrial Group, an indirect 38.98% stake, resulting in a controlling 71.66% ownership. Hubei Dongmei, which specializes in automotive fluid pipelines, will then be consolidated into Shandong Meichen's financial statements. The transaction, approved by Shandong Meichen's board, is based on an asset appraisal report and is not considered a related-party transaction or a major asset restructuring. Completion is subject to customary regulatory filings.