China National Heavy Duty Truck announced on Wednesday that on November 25, 2009, the company’s wholly-owned subsidiary Jinan Power entered into an equity transfer agreement with CNHTC, pursuant to which China National Heavy Duty Truck has conditionally agreed to sell and Jinan. Power has agreed to purchase 100% equity of Jining Company and the consideration for the acquisition is RMB 97.4 million (equivalent to approximately HK$ 111 million).
Jining Company is principally engaged in the manufacture and sale of commercial vehicles for customers in the coal industry. As CNHTC holds the entire issued share capital of Sinotruk (BVI) Limited, the controlling shareholder of the Company. Therefore, Sinotruk is a connected person of the company and the acquisition constitutes a connected transaction of the company under the Listing Rules.
China National Heavy Duty Truck Jinan Power intends to acquire the shares of Jining Commercial Vehicle