Wanxiang Qianchao updates on major asset restructuring

Wanxiang Qianchao Co., Ltd. (000559) has provided an update on the progress of its major asset restructuring, which involves the acquisition of 100% equity in Wanxiang America Corp. The company plans to acquire the equity through a combination of share issuance and cash payment, alongside raising supporting funds from up to 35 specific investors. This transaction, initially disclosed on May 6, 2024, constitutes a connected transaction and is expected to be a major asset restructuring.

As of the announcement date, due diligence, auditing, and valuation work for the transaction are ongoing. The transaction plan is still under negotiation, and formal transaction documents have not yet been signed by the involved parties. Wanxiang Qianchao commits to timely disclosure of information as the transaction progresses.

The company also reminds investors that the transaction remains subject to various approvals, including a re-convened board meeting, a shareholder meeting, review by the Shenzhen Stock Exchange, and registration approval from the China Securities Regulatory Commission. The final approval timeline for these procedures remains uncertain.