Yijing Optoelectronics: Signs Preliminary Restructuring Investment Agreement Ningbo Ruilian to Become Controlling Shareholder

Yijing Optoelectronics ( 600537.SH ) announced that the company has signed the “Pre-Restructuring Investment Agreement” with the pre-restructuring guide and restructuring investors Ningbo Ruilian and Zhongrun Optoelectronics.

The industrial investors plan to subscribe in total for the company’s shares to be issued by capitalization to shareholders of no less than 455 million shares, paying total cash consideration of 819 million yuan, at an investment price of 1.8002 yuan per share. Of this, Ningbo Ruilian will contribute 719 million yuan to subscribe for no less than 399.5 million shares, and Zhongrun Optoelectronics will contribute 100 million yuan to subscribe for no less than 55.5494 million shares.

After the restructuring is completed, Ningbo Ruilian will become the company’s controlling shareholder, and Zheng Hualing will become the actual controller. The investors undertake that they will not transfer the shares within 36 months after obtaining them.

The announcement also states that the court’s filing and registration for the pre-restructuring does not represent formal acceptance of the restructuring; whether the company can enter the restructuring process and whether the restructuring will succeed are both subject to uncertainty. If the court rules to accept the restructuring, the company’s shares will be implemented with delisting risk warning.