Shanghai Electric (601727.SH) plans to spend 3.082 billion yuan to acquire 100% of Ningsheng Industrial's shares to accelerate the overall development of the automation industry

Zhitong Finance App News, Shanghai Electric (601727.SH) announced that Shanghai Electric Automation Group Co., Ltd. (“Automation Group” or “acquirer”), a wholly-owned subsidiary of the company, intends to acquire 100% of the shares of Shanghai Ningsheng Industrial Co., Ltd. (“Ning Sheng Industrial” or “Target Company”) held by Shanghai Electric Holding Group Co., Ltd. (“Electric Holdings” or “Transferee”) in cash. Using June 30, 2024 as the evaluation reference date, the valuation value of 100% of Ningsheng Industrial's shares was RMB 3.82 billion (ultimately state-owned) (The assessed value registered by the department shall prevail). On October 15, 2024, Ningsheng Industrial reviewed and approved a plan on profit distribution, with a total dividend of RMB 200 million to shareholders. The transaction price is based on the evaluation results described above. After deducting the above profit distribution amount from the assessed value, after friendly negotiations between the parties involved in the transaction, the transaction price of 100% of Ningsheng Industrial's shares was RMB 3,082 billion.

According to reports, Ningsheng Industrial is a shareholding management platform for industrial robotics-related businesses. It holds 50% of the shares of Shanghai Fanuc Robotics Co., Ltd. (“Fanuc Robotics”) and 25% of Shanghai Fanuc International Trade Co., Ltd. (“Fanuc International Trade”). Fanuc Robotics is a joint venture between Japan's FANUC Co., Ltd. (“Nippon Fanuc”) and Ningsheng Industrial, each holding 50% of the shares. The main products are industrial robots and factory automation solutions; Fanuc is a joint venture of Fanuc Robotics (Fanuc Robotics and Ningsheng Industrial hold 50% and 25% shares of Fanuc International Trade, respectively), and is mainly engaged in international trade and transit trade of industrial robot products.

By integrating the superior resources of both parties, especially in key areas such as lithium battery production, photovoltaic cell production and aviation automation assembly, to jointly carry out joint research on production line technology and design in response to customer needs, the transaction can not only improve the automation group's integration level in key areas of intelligent manufacturing, improve the overall capacity and core competitiveness of automated production lines, but also help accelerate the overall development of the company's automation industry, enhance the company's market competitiveness in the field of intelligent manufacturing, and further expand the company's future development space and enhance the company's profitability.