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Chongqing Machinery & Electric Co. Ltd. Class H ( (HK:2722) ) just unveiled an announcement.
Chongqing Machinery & Electric Co., Ltd. has agreed a connected transaction under which its parent company will inject RMB270 million into a non-wholly-owned subsidiary, increasing that unit’s registered capital and capital reserve. Following the capital increase, the parent will hold just over 20% of the target company, while Chongqing Machinery & Electric’s direct and indirect stake will fall from about 98.42% to roughly 78.51%, though the subsidiary will remain under its control and consolidated in its accounts.
Because Chongqing Machinery & Electric and its other subsidiary waived pre-emptive rights, the deal is treated as a deemed disposal under Hong Kong Listing Rules, triggering discloseable transaction requirements. As the parent company, the target company and Chongqing General Industry are connected persons, the transaction is also classified as a connected transaction, subject to reporting, announcement, annual review and independent shareholders’ approval, underscoring regulatory scrutiny over changes in ownership structure within the group.
More about Chongqing Machinery & Electric Co. Ltd. Class H
Chongqing Machinery & Electric Co., Ltd. is a mainland China-based industrial group listed in Hong Kong, operating through subsidiaries in the machinery and equipment sector. Its operations include manufacturing and related industrial businesses, with controlling stakes in various subsidiaries that support its broader presence in the Chinese machinery and general industrial markets.
Average Trading Volume: 24,440,167
Technical Sentiment Signal: Buy
Current Market Cap: HK$12.01B
For an in-depth examination of 2722 stock, go to TipRanks’ Overview page.