The popularity of mergers and acquisitions continues in 2015. Absen intends to acquire Westek

Absen (300389) announced on the evening of the 9th that the company planned to acquire 60% of the equity of Westek held by Zhong Zaibai and Zhang Wenxia for a consideration of 24 million yuan. After the acquisition is completed, the company will hold 60% of the shares of Westek, Zhong Zaibo will hold 40% of the shares of Westek, and Westek will become a holding subsidiary of the company.

Westek is mainly engaged in the R&D, production, sales and service of stage rental and creative LED displays. The company's products are characterized by being light, thin, transparent, and quick to disassemble and assemble. The design concept of the product is highly original and is in a leading position in the industry. Westek products have been successfully used in major projects such as China Central Television, the 2008 Beijing Olympics, the United States Pavilion and the Russian Pavilion at the 2010 Shanghai World Expo. Westek products are mainly exported to dozens of countries and regions.

As of October 31, 2014, Westek's total assets were 16.4879 million yuan, and total shareholders' equity was 9.3908 million yuan. Westek's operating income from January to October 2014 was 33.5634 million yuan, and its net profit was 3.0456 million yuan.

According to the transaction agreement, Zhong Zaibo promised that the audited net profit of Westek in 2015 and 2016 will not be less than 15 million yuan and 25 million yuan, otherwise he will need to transfer no more than 6% of the total equity of Westek to Absen free of charge.

Absen said that after acquiring Westek, the company can quickly improve its product lines and solutions in the field of stage rental and creative display, and complement the company's existing products. The combination of the two will help promote the sales of the company's existing products and better meet customer needs.