Image Credits - Renze
Renze Harvest International’s subsidiary, Shenzhen Baokai Investment Holding, has entered into a second supplemental agreement with Shenzhen Hong Jia Xin Technology to acquire the remaining equity interest in Shantou Taisheng Technology. This agreement marks a pivotal development in the ongoing acquisition process and signifies a major step forward for Renze Harvest’s strategic expansion.
Under the revised agreement, the terms of the acquisition have been adjusted significantly. The equity interest to be acquired has been reduced from 49% to 42.33%, and the total payment amount has been decreased from 1.13 billion yuan to 975.7 million yuan. The adjustment in payment terms includes complex offset arrangements: 436.5 million yuan due from GSLG Group, the vendor’s parent company, will be offset by 371.3 million yuan owed by Shenzhen Baoxin to Xiamen International Bank Fuzhou Branch, and 167.9 million yuan owed by GSLG Group to Renze Harvest.
Upon completion of this transaction, Renze Harvest will hold a substantial 93.33% stake in Shantou Taisheng Technology, thereby enhancing its strategic position and influence in the technology sector. This significant ownership will allow Renze Harvest to consolidate its presence and leverage Shantou Taisheng’s technology assets to drive further growth.
The market reaction to this agreement has been favourable, with Renze Harvest’s shares experiencing a nearly 4% increase by the close of trading on Thursday. This positive market response reflects investor confidence in the company’s strategic direction and its potential to capitalize on the expanded technology portfolio.
The supplemental agreement is a crucial component of Renze Harvest’s broader strategy to strengthen its market position and expand its footprint in the technology sector. It underscores the company’s commitment to growth and consolidation, as well as its focus on enhancing its technological capabilities to support future development and innovation.
The completion of this acquisition will be closely watched by industry analysts and investors, as it is expected to have a significant impact on Renze Harvest’s operational capabilities and market presence in the technology sector.