Wang intends to acquire two companies overweight LED cultural media

After three months of suspension, leyard finally disclose the restructuring plan, the company intends to invest about 900 million yuan ho purchased two of all equity company, its shares will also resume trading today.

It is understood that the two companies have had a single impact IPO fruitless, and in recent years, relatively flat operating results. However, Riyadh is very optimistic about the subject of the future of the company, is the introduction of ESOP financing involved in mergers and acquisitions.

Transaction price of nearly 900 million yuan

The 5 day, Riyadh announcement, the company intends to acquire Guangzhou laford cultural Polytron Technologies Inc (hereinafter referred to as laford cultural) and Beijing jinlixiang color art Polytron Technologies Inc (hereinafter referred to as Jin Zhengxiang) 100% stake and raise matching funds.

According to the asset assessment report shows that in September 30, 2014 as the base date, the cultural value of the net assets of the cultural value of 284 million 500 thousand yuan, the valuation of the shares of the value of $681 million, the appreciation rate of 139.05%. After consultation by the parties to the transaction, the 100% shares of the shares of the culture of Feng Fu is priced at $647 million. In September 30, 2014 as the base date, the net asset value of Jin Xiang was 254 million yuan, Jin Lixiang shares of the assessed value of $262 million, the appreciation rate of 3.19% yuan. After consultation by the parties to the transaction, the final determination of the 100% stake in Jin Lixiang priced at $243 million, similar to the sale of parity.

The transaction, the two companies total Riyadh proposed acquisition of 890 million yuan, the listed company will be purchased through the issuance of shares and cash payment methods. In order to achieve the transaction, Riyadh counterparty intends to increase the shares of 40 million 499 thousand and 900 shares, the issue price of 17.65 yuan / share, to pay for part of the acquisition price.

At the same time, Riyadh also launched ESOP subscription of additional shares to raise matching funds, including 12 executives Riyadh chairman Li Jun and the company's core backbone will be involved in the program. It is reported that the total amount of matching funds of not more than 238 million yuan, the issue price of $21.31 / share, the number of shares issued is not more than 11 million 181 thousand shares. Among them, 175 million yuan for the payment of the cash consideration of the transaction, the remaining funds will be used to pay the cost of trading intermediaries and supplement working capital.

Both companies have hit IPO

In fact, Riyadh has not previously held laford cultural, Jin Lixiang shares, until after the completion of the transaction, the two companies will become a wholly owned subsidiary of riyadh. Lyad believes that the acquisition of Listed Companies in line with the development strategy, and after the completion of the acquisition of the company will provide more products and solutions to customers in the field of LED culture media.

Data show that the laford culture was established in 1997, is a leading high-end cultural arts equipment research and development production and sales, system integration and integrated solutions, concept planning and integrated service provider of creative design; Jin Lixiang was founded in 2005, is a leading provider of LED visual effects arena and LED equipment rental providers.

Li Feng culture and Jin Lixiang have had an independent impact on the A-share market experience A. The two were submitted to the Commission in September 2012 and the IPO application documents in, and both have received notice of acceptance. But it is regrettable that the two companies listed on the dream has failed. Due to the proposed transfer of the board, apply for revocation of the listing application documents; Jin Lixiang was due to decline in net profit for the year 2012 compared to the withdrawal of the listing application documents in the year 2011.

From the point of view of financial data, 2012, 2013 and 2014 three quarter, laford cultural revenues were 220 million yuan, 242 million yuan and 183 million yuan; net profit after deduction of non 19 million 647 thousand and 500 yuan, 17 million 445 thousand and 600 yuan and 16 million 228 thousand and 200 yuan. In contrast, Jin Lixiang's business situation is not too ideal, the completion of the company operating income of 181 million yuan, 171 million yuan and 75 million 461 thousand and 800 yuan; after deduction of non net profit of 21 million 182 thousand and 600 yuan, 8 million 838 thousand and 800 yuan and 10 million 43 thousand and 300 yuan loss.

In order to ensure the performance, Zhou Lihe, Zhu Xiaoli, Dai Xu, elite investment as the compensation obligation commitment, laford cultural ~2017 2014 annual audited deduction of non net profit of 28 million yuan, 54 million yuan, 64 million yuan and 76 million yuan. In addition, LAN man, Li Wenping and other 5 natural persons committed, Jin Xiang 2015 ~2018 audited net profit of non deduction of 19 million yuan, $24 million, $29 million and $34 million. If you fail to meet the criteria for performance commitments, the parties will be compensated in the form of shares or cash.

In addition, Riyadh (December 31st) on Wednesday evening released results notice, is expected in 2014 net profit rose 90%-110%, reached 152 million yuan -1.68 yuan. Net profit of 802 billion 252 million yuan over the same period last year.

Lyad said that during the period the company LED small spacing TV orders of nearly 670 million yuan, representing an increase of about 103%; overseas orders of nearly 350 million yuan, representing an increase of nearly 75% over the same period last year; mergers and acquisitions obvious synergies, JINDA lighting and video over the completion of the 2014 year Lyad promised profits, government subsidies of more than 30 million yuan, so this period operating income and net profit grew by a large margin.

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