On April 8th, Hangzhou Zhongheng Electric Co., Ltd. issued an announcement stating that its controlling shareholder, Hangzhou Zhongheng Technology Investment Co., Ltd., along with its shareholders Zhu Guoding and Bao Xiaoru, signed a Strategic Investment Cooperation Framework Agreement with Contemporary Amperex Technology Co., Limited (CATL) earlier that same day.
Under the framework agreement, CATL intends to subscribe to an additional registered capital of 14,411,764.71 RMB in Zhongheng Technology for a consideration of approximately 4.1 billion RMB. The capital injection will be made through a combination of cash and equity. Specifically, CATL plans to contribute its 99.6970% equity stake in Shidai Tianyuan (Shenzhen) Technology Co., Ltd., valued at 1,196.364 million RMB, with the remaining consideration to be paid in cash.
Upon completion of this capital increase, CATL will hold a 49% equity stake in Zhongheng Technology, while the shareholding percentages of the original shareholders, Zhu Guoding and Bao Xiaoru, will be adjusted to 35.70% and 15.30%, respectively.
Concurrently, CATL will participate in the corporate governance of the listed company through specific arrangements. Specifically, following the completion of the capital increase, Zhu Guoding, as the actual controller of the listed company, and Zhongheng Technology, as the controlling shareholder, will exercise their shareholder rights to ensure that one director candidate recommended by CATL—provided they meet securities regulatory requirements—is appointed as a director of the listed company after completing the relevant internal deliberation procedures.
It is reported that CATL's proposed capital injection into Zhongheng Technology aims to facilitate strategic business cooperation between CATL and Zhongheng Electric in areas encompassing green ICT infrastructure, transportation electrification, and novel power systems.
It is worth noting that the current consensus is solely a framework agreement, and the definitive formal transaction agreement has yet to be signed.
Source：EnergyTrend