China Electronics Indirect Acquisition Zhenhua Technology

Zhenhua Technology (000733.SZ) issued a notice on the evening of 21, saying that due to the transfer of state-owned shares, China Electronic Information Industry Group Co., Ltd. (hereinafter referred to as China Electronics) will indirectly control 36.13% of the company's shares, thereby indirectly acquiring company.

According to the announcement, China Electronics intends to transfer the state-owned assets supervision and Administration Commission of Guizhou province to 11.47% stake in Guizhou Zhen Hua electronic state asset management Co., Ltd. (hereinafter referred to as Guizhou Zhen Hua) by way of administrative transfer of state-owned property rights. Before the acquisition, China's electronic capital increased by 700 million yuan to acquire 39.53% stake in Guizhou Zhen Hua. After the completion of the transfer, the proportion of China's electronic holding Zhen Hua in Guizhou was 51%, the absolute holding of Guizhou Zhen Hua, and Guizhou Zhen Hua owns 52.85% of the Zhen Hua group.

As the acquisition exceeds 30% of the total share capital of the listed company, the CSRC has exempted the tender offer obligations of China's electronics.

China Electronics is a state-owned super large group company directly managed by the central government. It is the largest state-owned IT enterprise in China. There are 14 controlled listed companies. China Electronics said holding Guizhou Zhenhua will help speed up its related business development and achieve the company's overall strategy.

Huachang Securities believes that the acquisition of China Electronics has basically completed, but the restructuring plan has not yet been announced. The future development of Zhen Hua technology will remain unclear, but there is still much room for imagination. Zhen Hua technology is currently the most powerful subsidiary of Chinese military components in China's electronics company. Whether China Electronics will strengthen or expand its military industry by injecting its military assets into the platform of Zhen Hua science and technology is worth paying attention to.

Zhenhua Technology 21 reported 12.55 yuan / share, up 3.04%.