Lingbao gold (03330) announced on July 7, 2017, the company and Beijing Fortune Investment an equity transfer agreement, the company intends to sell the Lingbao Huaxin 60% equity, the price is about 637 million yuan.

According to the equity transfer agreement, the buyer has pledged to Huaxin after the completion of Lingbao not less than RMB 700 million in loans to supplement its working capital, will be used to repay part of the debt owed by Huaxin lingbao. In addition, at the date of the announcement, Lingbao Huaxin has issued a letter of commitment to the company commitment within one year of Lingbao Huaxin company pay off all debts owed about 504 million yuan.

Announcements, Lingbao Huaxin company directly, as a wholly-owned Affiliated Companies, mainly engaged in the production and sale of copper foil and flexible copper clad laminate. The company has 100% equity pledge Lingbao Huaxin to import and Export Bank Chinese.

According to the 2016 net income of RMB 118 million Lingbao Huaxin element 9 times earnings; according to the company and the buyer valuation division, will all the equity valuation of Lingbao Huaxin results of Lingbao Huaxin fair market in 2016.

The year 2016, net profit after tax of 60% Lingbao Huaxin multiplied by the price earnings ratio of 9 times to 637 million yuan, and Kaiyuan asset evaluation on equity valuation of Lingbao Huaxin all results for 1 billion 49 million yuan, so the Lingbao Huaxin 60% equity interests valuation results about 630 million yuan.

Source: smart Finance