Liaoyuan Joyson Electronic (600699), which underwent a restructuring in December and became a maker of auto components, received a second major injection of assets after obtaining 2.4 billion yuan worth of overseas auto component assets and related technologies, reports Shanghai Securities News, citing a company filing.

Liaoyuan Joyson Electronic plans to issue approximately 235 million shares to controlling shareholder, JOYSON HOLDING, at 7.81 yuan per share, in order to acquire 74.90 percent of Preh Holding GmbH and 5.10 percent of Preh GmbH.

Preh GmbH is a maker of auto components such as electronic components, printed circuit boards, and specially designed software drivers. It has sales and production bases in five countries and earns most of its revenue from the European and North American markets.

Preh Holding GmbH currently holds 94.90 percent of Preh GmbH. After the transaction, Joyson Electronic will fully control Preh Holding GmbH and Preh GmbH.

With BMW, Mercedes-Benz among its main customers, Preh GmbHv recorded unaudited 2011 revenue and net profit of 3.88 billion yuan and 127 million yuan, respectively.

In addition, Joyson Electronic will pay cash for the remaining 25.10 percent of Preh Holding GmbH from seven foreign shareholders.

At the same time, Liaoyuan Joyson Electronic plans to issue stock to up to 10 investors at not less than 7.03 yuan per share in order to replenish working capital. The size of the private placement will not exceed 25 percent of the total value of the assets to be injected.

The value of the assets to be injected is about 294.8 million euros, equivalent to about 2.406 billion yuan based on the current exchange rate.

According to Joyson Electronic, the acquisition of Preh GmbH will improve its competencies and increase its international market share.

Source:capitalvue.com