Liantai Environmental Protection (603797.SH) plans to sell 100% of Hunan Liantai and Shantou Liantai's shares for RMB 1,611 billion

Zhitong Finance App News, Liantai Environmental Protection (603797.SH) announced that the company plans to acquire 100% of Hunan Liantai's shares and 100% of Shantou Liantai's shares. The counterparty will pay the consideration for this transaction in cash. After the transaction was completed, the listed company no longer holds 100% of Hunan Liantai's shares and 100% of Shantou Liantai's shares. The listed company still holds some of the shares in the holding subsidiary of Shantou Liantai, including 40% of the shares of Southern Jiangsu Water, 39.50% of Xinxi Water, 39% of Chenghai Water, 39% of Guanbu Water, 39% of Chaoying Water's shares, and 15% of Chengxi Water's shares. The transfer price for Shantou Liantai is RMB 590 million, while the transfer price for Hunan Liantai is RMB 1,021 million, for a total of RMB 1,611 billion.

Prior to this transaction, the main business of the listed company was the investment, construction and operation management of urban and rural domestic sewage treatment facilities, providing sewage collection, transportation and/or terminal sewage treatment services within the franchise area authorized by the local government. The target of the transaction is some sewage treatment project companies of listed companies. After this transaction, it will help mitigate the liquidity risks and debt service risks of listed companies, and provide sufficient financial guarantees for the continuous and stable operation of listed companies. The size of accounts receivable from listed companies will drop significantly, which is conducive to reducing the erosion of credit impairment losses on future profits and improving the overall asset quality of listed companies. The listed company's main business did not change before or after this transaction.