21st Century Business Herald, 8/13/09
Beijing-based high-tech conglomerate Tsinghua Tongfang (600100.SH) has submitted a notice to the Shanghai Stock Exchange announcing its intent to purchase 33.75 mln shares in Tangshan Jingyuan Yufeng Electronics (002049.SZ), a manufacturer of quartz crystal components. Tangshan Jingyuan Yufeng has a total of 135 mln shares, 35.3% of which are owned by Tangshan Jingyuan Science & Technology, its largest shareholder. After the purchase, Tsinghua Tongfang will become Tangshan Jingyuan Yufeng's largest shareholder with a 25% stake in the company, while Jingyuan Science & Technology's stake will drop to second largest at 10.3%.
According to Tsinhua Tongfang's notice, it will purchase Jingyuan Yufeng shares for RMB 8.16 each. Tsinghua Tongfang has issued 16.88 mln new shares priced at RMB 16.32 each, raising a total of RMB 275 mln, to fund the acquisition. Tsinghua Tongfang PR manager Li Wenliang said that by acquiring Tanghsan Jingyuan Yufeng, Tsinghua Tongfang will be able to extend itself upstream along the industry chain.