Liard: plans to acquire 350% of Zhongtian Lighting's 100% stake

On June 29, Liard (300296) announced in the evening that the company intends to acquire 100% equity of Zhongtian Lighting held by Jingsheng Business and Runying Business in cash of RMB 350 million.

In the aforementioned equity transfer process, the transferor used 70% of the transfer amount of the 350 million yuan acquired (corresponding to 245 million yuan) to purchase the controlling shareholder and the actual controller Li Jun. Company shares.

The above acquisition is conducive to the company's national layout of the lighting sector business. After the company acquired Jinda Lighting in 2014, the Liede Group's market share in the LED lighting engineering sector has achieved explosive growth. Jinda Lighting has won the bid and is implementing the target amount of 277 million yuan. The Shore City Light Show has become a new benchmark for urban landscape lighting.

At present, the national urban landscape lighting industry is expected to be in the high-speed growth period in the past three to five years, the overall market size will exceed 100 billion yuan, and the company has formed a considerable market first-mover advantage in this field, and the urban tourism of the Liard Group. The business sector formed a good synergy.

However, the industry is currently strong in regional and business scattered. Jinda Lighting currently has a certain market share only in the South. However, Zhongtian Lighting is the leading enterprise in the landscape lighting business in Shanghai.

The company's acquisition of 100% equity of Zhongtian Lighting can optimize the company's business layout in urban landscape lighting. Based on Shanghai, it will greatly enhance the market share of the company's lighting engineering business in East China, which is beneficial to the company's lighting engineering business. National integration will enhance the overall competitiveness of the business segment and form an absolute competitive advantage, further enhancing the revenue scale and net profit level of the company's lighting segment.

At the same time, the company said that the acquisition is also conducive to the comprehensive development of the Liard Group's business in the East China region. Prior to this acquisition, the company implemented a number of strategic cooperation in the integration of culture and technology, and formed a large advantage in audio-visual product development, production and customer resources.

After the completion of the acquisition, Liard is based on Zhongtian Lighting, which can help the company gradually realize the layout of the grid format market in East China, and then build the Liede Group East China Comprehensive Base, which integrates the members of the Liard Group in the East China region. Sales, procurement, production, and R&D resources have boosted the existing business of the Group's member companies.