Uuzu Enters Backdoor Listing Agreement
Shenzhen Stock Exchange, 10/24/13
Fuzhou-based umbrella manufacturer Susino (002174.SZ) has announced that the company intends to acquire a 100% stake in Shanghai-based browser game developer and operator Uuzu Information Technology through share issuances. The transaction will value Uuzu at around RMB 3.87 bln, approximately 13.89 times Uuzu's yearly earnings.
Susino also intends to sell all of its assets and liabilities to Xiamen Meihua Industrial for a total price of RMB 269.17 mln. At the same time, Susino will issue 193 mln shares at a price of RMB 20.06 per share to eight Uuzu executives, including Uuzu Chairman Lin Qin, at a total value of RMB 3.87 bln. In addition, Susino will launch a private placement of equity to raise matching funds not exceeding RMB 490 mln, at a price no lower than RMB 18.06 per share.
After the completion of the transactions, Lin will hold a 33.31% controlling stake in Susino and be the company's largest shareholder.
Per the terms of the purchase agreement, Uuzu guarantees minimum annual net profits of RMB 286 mln, RMB 387 mln, RMB 451 mln, and RMB 522 mln for 2013, 2014, 2015, and 2016, respectively.
Keywords: 002174.SZ listing Uuzu profit M&A online gaming Susino
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