Dongshan Precision advances major overseas optoelectronics acquisition

Suzhou Dongshan Precision Manufacturing Co., Ltd. announced progress on its overseas investment, which involves its wholly-owned subsidiary, Superflex Group (Hong Kong) Limited, acquiring 100% of Source Photonics Holdings (Cayman) Limited ("Source Photonics"). This acquisition includes a share purchase consideration of up to $629 million for Source Photonics' 100% equity, and up to $58 million for employee stock options.

Additionally, the company plans to subscribe to convertible bonds of Source Photonics, totaling up to 1 billion yuan, to support its operational development and repay existing convertible bonds. The combined investment, including the convertible bond subscription, will not exceed 5.935 billion yuan. Following the transaction, Source Photonics will become a wholly-owned subsidiary of the company.

The company has confirmed that it has already disbursed the primary equity transfer payment (or deposit) as per the relevant agreements. It will proceed with the equity transfer formalities in an orderly manner and fulfill information disclosure obligations as further progress is made.