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Giant Group (9921) held a Board of Directors meeting a few days ago (August 07) and approved a major equity acquisition plan with a material information announcement released on the same day. In alignment with the group’s overall strategic business adjustment, Giant intends to acquire all shares that the counterparty, United King Limited (Samoa) (“UKL”, the second largest shareholder of D.Mag and a related party of the Company) holds in D.Mag (Kunshan) New Material Technology Co., Ltd. (“D.Mag”), through its wholly owned subsidiary Giant Holding Co., Ltd. (“GCH”). The acquisition will be funded through own funds and external financing for a total purchase price not exceeding RMB 597 million (approximately TWD 2.83 billion).
Up to 130,450,500 shares will be acquired under this transaction at a proposed cash consideration of RMB 4.5764 per share, with a total transaction amount of approximately RMB 596,993,669. Giant Group currently indirectly holds 60.3938% of the shares of D.Mag through its subsidiaries. This transaction expects to acquire approximately 36% of non-controlling interests in D.Mag for RMB 597 million. Upon completion of this transaction, Giant Group's consolidated shareholding ratio in D.Mag will increase to 96.63%.
D.Mag is primarily engaged in the manufacturing and sales of products utilizing advanced alloy material, accounting for approximately 7% to 8% of Giant Group’s consolidated revenue.
Giant Group stated that the increase in its shareholding in D.Mag is based on the group’s strategic business adjustment, aiming to further focus on relevant business development and elevate the group's operational management efficiency.
The transaction price was determined with reference to the independent expert’s opinion on the reasonableness of the transaction price, as the pricing benchmark. Funding for the acquisition will be sourced through Giant Holding Co., Ltd.’s own funds and external financing. This transaction will subsequently apply for investment approval from the Department of Investment Review, Ministry of Economic Affairs (“MOEA Approval”), in accordance with the law, and the MOEA Approval will be one of the closing conditions.
