A state-owned group agreed to buy control of cockpit supplier Foryou for 5.66 billion yuan

Huizhou Foryou General Electronics said on August 22 that its controlling shareholder, Huizhou Huayue Investment, had signed an agreement the previous day transferring 148,552,089 shares, or 28.30 percent of the company, to Sichuan Jiuzhou Investment Holding Group. The price is 38.1011 yuan per share, for a total consideration of about 5.66 billion yuan.

Huayue held 51.60 percent before the transaction and would retain 23.30 percent afterwards. Jiuzhou would become the controlling shareholder, and the company’s actual controller would change from eight named individuals to the Mianyang Municipal State-owned Assets Supervision and Administration Commission. Foryou described Jiuzhou as a large state-owned high-technology group whose businesses span electronic system equipment, communications and intelligent manufacturing, software and data intelligence, and automotive and high-end components.

Jiuzhou committed not to transfer the acquired shares for 60 months from the completion of registration, and not to pledge them for 36 months. It said at least half the funding comes from its own resources, that none originates from the listed company, and that it has no plan to change Foryou’s main business within 12 months or to inject related assets for 36 months.

The transaction still requires shareholder approval, state asset regulatory clearance, antitrust review if applicable, a compliance opinion from the Shenzhen Stock Exchange and share transfer registration. Foryou said material uncertainty remains.

The company’s shares have been suspended since the open on August 18. In a separate announcement the same day, Foryou said trading would resume from the open on Monday, August 24.

In its half-year results summary, Foryou reported first-half revenue of 6.923 billion yuan, up 30.36 percent, with automotive electronics at 5.063 billion yuan.