NVC Intends To Purchase 890 Million Yida (Hongkong) Optoelectronics To Enter The North American Market.

- Sep 03, 2018-

Redstone Lighting Holdings Limited (hereinafter referred to as "Redstone Lighting" or "our company") announced yesterday (30) evening that it had entered into a formal share purchase agreement with Jadestone on August 30, 2018 to acquire 100% equity of Yida (Hong Kong) Optoelectronic Technology Co., Ltd. (hereinafter referred to as "target company") from Jadestone at a cost of RMB 890 million. Yuan will be adjusted according to the formal share purchase agreement.——LED lighting

After the transaction is completed, Target Corp will become a wholly owned Affiliated Companies of NVC. The main business of the target group (target company and its affiliates) is to design, manufacture and sell LED lighting products to the North American market. The target group's profit after tax in 2016 and 2017 was 64 million 400 thousand yuan and 78 million yuan respectively.——LED lighting

According to the announcement, the target company was wholly owned by DHL before DHL sold its full equity of the target company to Jadestone at a cash price of RMB 190 million in December 2016. On December 30, 2016, Jadestone completed the acquisition of the target company. In addition to the cash cost of $190 million, Jadestone also agreed to repay the debts owed by the target company to DHL and its subsidiaries amounting to $377 million. The total cost of Jadestone acquisition of target group is RMB 567 million yuan.——LED lighting

Rex Lighting said the acquisition gave the company a chance to enter the North American market and increase its overseas sales. In addition, the company can also learn from the successful experience and feasible business model of the target group management team when establishing business in other overseas markets.——LED lighting

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