Gree plans to invest 5.2 billion yuan in Changyuan Group to lay out new energy sources.
[News] Dong Mingzhu, the chairman of Gree Electric, once caused a sensation. Now Gree Group, the controlling shareholder of Gree Electric, also plans to deploy new energy business. On the evening of May 15th, Changyuan Group, a listed company, announced that Gree Group planned to acquire a 20% stake in Changyuan Group for an offer of 5.2 billion yuan. Changyuan Group’s main business is the research, development, production and sales of new energy vehicle materials and intelligent equipment, which can be said to be an important enterprise in the field of new energy vehicles.
The funds needed for this tender offer will come from the self-owned and self-raised funds of Gree Group, not directly or indirectly from listed companies or their related parties. Gree Group explained the reason for the tender offer to buy Changyuan Group: "We are optimistic about the future development prospects of listed companies. This acquisition aims to strengthen strategic investment and cooperation with Changyuan Group. At the same time, Gree Group intends to use its own superior resources to further promote the stable development of listed companies."
Ni Zhaohua, the secretary-general of Changyuan Group, previously told the media that Gree Group offered to acquire Changyuan Group because it was optimistic about the company’s new energy vehicles and smart equipment business sectors. There is no positive response to whether the two sides will join hands to get involved in the automobile industry chain. It is reported that Changhe Investment, a subsidiary of Li Ka-shing family, was a major shareholder of Changyuan Group. In recent years, the company has continuously increased investment in the field of new energy vehicles.
As a member of Gree Department, before Gree Group wanted to invest in Changyuan Group, Dong Mingzhu, the chairman of its Gree Electric, had invested heavily in Zhuhai Yinlong, which is engaged in new energy vehicle business, and became the second largest shareholder of Zhuhai Yinlong. Naturally, it is easy for the industry to associate Gree Group’s acquisition of Changyuan Group with Dong Mingzhu’s car making. However, the chairman of Changyuan Group said that Dong Mingzhu did not participate in the negotiations, and there is no cooperation between Changyuan Group and Zhuhai Yinlong at present.
Yinlong New Energy Bus
It is worth noting that although he once served as the chairman of Gree Group, at the end of 2016, Dong Mingzhu was removed from the position of chairman of Gree Group. At present, Gree Electric is the chairman of the listed company, and Gree Group is the controlling shareholder of Gree Electric.
Dong Mingzhu had planned to acquire Zhuhai Yinlong by the listed company Gree Electric, but the plan fell through in November 2016 due to the opposition of shareholders. However, Dong Mingzhu’s investment plan for Zhuhai Yinlong is still very firm. In a forum one month later, he officially announced his personal investment in Zhuhai Yinlong, and invited Wanda Group, CIMC and other companies to jointly increase their capital by 3 billion yuan. Even Wang Jianlin, the chairman of Wanda, personally invested 500 million yuan with the help of Dong Mingzhu. Despite Dong Mingzhu’s efforts to build cars, negative news broke out from Yinlong this year, including high payment owed to suppliers (officially denied) and the suspicion of production reduction and shutdown. The original senior management of Yinlong has been adjusted in a large area, and most of them were taken over by the former Gree background employees. (Source: Securities Daily; Compile/car home Du Junyi)
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