Real Estate Firm Join-In Acquires 51% Share of Handset Maker Wingtech
China Securities Journal, 4/16/15
Chinese real estate developer Join-In (600745.SH) recently announced a plan to acquire a 51% stake in Zhejiang-based handset maker Wingtech Communication for RMB 1.826 bln, to be paid through the issuance of 154 mln shares valued at RMB 11.86 per share. With the completion of the acquisition, Join-In's business will expand to include development and manufacturing of telecom hardware, which it will leverage to develop opportunities in the "Internet + Healthcare" sector.
Wingtech began as a research and design house for smartphones and other telecom equipment, but has gradually grown into an integrated design and manufacturing business model. Wingtech's clients include mainland handset vendors Huawei Technologies, Xiaomi, Coolpad Group (2369.HK), Lenovo (0992.HK), and TCL Communication Technology (2618.HK), and Taiwanese handset maker HTC. Wingtech has begun plans to develop fitness-oriented wearable smart hardware products, wireless communication modules for smart home, and complete smart home solutions.
Join-In is primarily a real estate property developer. Due to macroeconomic changes, the company's real estate business is under heavy pressure. Therefore, the company is actively seeking to diversify through targeted acquisitions of companies in emerging industries.
Keywords: mobile healthcare mobile fitness smart appliance handset wireless WingTech business model Join-In 600745.SH handset vendor smartphone M&A wearable computer online real estate
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