Will it be heavily invested in the acquisition of an educational institution, Qinshang Optoelectronics, will it be transformed into an education company?

On February 4, Dongguan Qinshang Optoelectronics Co., Ltd. issued the "Announcement on Suspension of Major Events", stating that it intends to plan the acquisition of equity, the underlying assets belong to the education industry, and the estimated amount has reached the standard for consideration by the shareholders' meeting. Upon application to the Shenzhen Stock Exchange, Qinshang Optoelectronics Co., Ltd. was suspended from trading on February 6, 2017.

This may mean that Qinshang Optoelectronics will spend a lot of money to acquire an educational institution in the near future, and continue to expand the map of diligent education. The educational career of Qinshang Optoelectronics has gone deeper and deeper. As a listed company in the manufacturing industry, Qinshang Optoelectronics is so much in the layout of education, is it worthwhile to invest heavily in education? Will Qinshang Optoelectronics transform into an education company?

Just before the Spring Festival, on January 27, 2017, Qinshang Optoelectronics and Bump Education signed the Memorandum of Capital Increase/Acquisition. According to the memorandum, Qinshang Optoelectronics intends to increase the capital of the bumper education and/or acquire part of the equity of the original shareholders of the bumper education in cash, and hold a shareholding of not less than 10% of the bump education, this time, the company will increase the capital and/or The acquisition of the original shareholder's equity of Bianjiao Education is based on the pre-assessment of the investment of RMB 260 million to calculate the capital increase or purchase amount.

The specific proportion of Qinshang Optoelectronics Capital Increase and the acquisition of the original shareholder of Bump Education shall be determined by mutual agreement. After completing the first shareholding, Qinshang Optoelectronics plans to complete the acquisition of the remaining equity of Bump Education through the issuance of shares to purchase assets and cash payment.


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