Tongfang youyou has issued a notice on the acquisition of Novelty Lights. American Lighting, an indirect wholly owned subsidiary of tongfang youyou, intends to get on with 12 million usd (about 82.4 million yuan) to Lighten Up Holdings for two delivery periods.
On January 1, 2019, the parties entered into an equity purchase agreement to complete the first delivery, according to the announcement.
American Lighting purchased 80 percent of Novelty Lights for $8,683,304.33. The remaining 20 percent will be purchased during the second delivery.
According to tongfang youyou, upon the completion of the first delivery, the company will indirectly hold 80% of Novelty Lights, which will become the company's indirect non-wholly owned subsidiary.
According to the data, tongfang youyou is mainly engaged in the research and development, sales and production of LED decorative lights, LED general lighting products, LED professional lighting products and engineering projects, providing asset management services, investment advisory services and securities trading business.
American Lighting is an indirect wholly owned subsidiary of tongfang youyou and is a Lighting solution provider based in Delaware, USA.
In addition, Novelty Lights business is the direct import and sale of all seasonal, decorative or lighting lamps, light sources, tubes, bulbs and related products to North America through the wholesale and retail channels, including (but not limited to) chandeliers, festival Lights and Novelty lamps.
According to tongfang youyou, the acquisition of Novelty Lights aims to improve the sales channels of American Lighting through the Novelty e-commerce platform.