M & A: Funeng Oriental Equipment Technology Planned to Purchase Internet Data Center Project in Cash

On the evening of November 19, Funeng Oriental issued an announcement stating that in order to cultivate new revenue growth for the company, the company intends to acquire 100% equity of Guangdong Funeng Big Data Industrial Park Construction Co Ltd (hereinafter referred to as "Funeng Big Data") in cash. 

On the same day, the company held a board meeting and reviewed and approved the "Proposal on the proposed acquisition of 100% equity of Guangdong Funeng Big Data Industrial Park Construction Co Ltd and the signing of the "Equity Acquisition Intention Agreement" and Related Party Transactions". The related parties have avoided voting and the remaining 5 directors unanimously agreed to this proposal. The "Equity Acquisition Intentional Agreement" to be signed this time is only an intentional agreement, and the corresponding review procedures will be performed in accordance with the content of the formal agreement.

According to the announcement, Funeng Big Data is jointly held by Guangzhou Fengyun Information Technology Co Ltd (hereinafter referred to as “Guangzhou Fengyun”) and the related party Foshan Power Construction Group Co Ltd. (hereinafter referred to as “Foshan Power Construction”), and Foshan Power Construction holds Shares of 70%, Guangzhou Fengyun holds 30%. Among them, Foshan Power Construction is a wholly-owned subsidiary of Foshan Public Utilities Holdings Co Ltd (hereinafter referred to as "Foshan Public Control"), the controlling shareholder of the company. Therefore, the transaction involves connected transactions.

Funeng Oriental stated that the acquisition of Funeng Big Data is to make full use of the company and shareholders’ resource advantages, while continuing to adhere to the development strategy of “endogenous development” and “extensional mergers and acquisitions”. The company intends to specialize in 3C consumer electronics In addition to the equipment and lithium battery automated production equipment business, seize the development opportunities of "new infrastructure", get involved in the digital economy industry, acquire Internet data center (IDC) projects, carry out rack rental and operation and maintenance services, and provide cloud services, Value-added services and big data services, cultivate new revenue growth points, further adjust and optimize the company's industry, and create a "three-wheel drive" model for the company's business development.

Funeng Oriental stated that if the transaction can be successfully completed, Funeng Big Data will become a wholly-owned subsidiary of the company, and the company will use Funeng Big Data as the main body to carry out IDC business. After the completion of the acquisition, the company can make full use of the advantages of the state-owned enterprise platform and the advantages of listed companies to develop IDC business.

In addition, the company issued an announcement stating that the company had appointed ZHU Hongqiang as the company's deputy general manager and secretary of the board of directors. ZHU Hongqiang had previously worked for Robam Appliances and other companies.

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M & A: Funeng Oriental Equipment Technology Planned to Purchase Internet Data Center Project in Cash