Gree Electric Appliances Inc.Of Zhuhai(000651) decides to terminate the transfer of Zhejiang Dun’An Artificial Environment Co.Ltd(002011) 9.71% shares.
On the evening of May 18, Zhejiang Dun’An Artificial Environment Co.Ltd(002011) ( Zhejiang Dun’An Artificial Environment Co.Ltd(002011) , Zhejiang Dun’An Artificial Environment Co.Ltd(002011) ) announced that the company’s controlling shareholder Gree Electric Appliances Inc.Of Zhuhai(000651) terminated the planning agreement and transferred 9.71% of the company’s shares held by Dunan Holding Group Co., Ltd. (hereinafter referred to as “Dunan holding”). There is still great uncertainty in the follow-up arrangement of 9.71% shares of the company held by Dunan holdings Zhejiang Dun’An Artificial Environment Co.Ltd(002011) will resume trading from the morning of opening on Thursday, May 19, 2022.
Previously, several rounds of games were conducted around this part of equity Gree Electric Appliances Inc.Of Zhuhai(000651) , Dunan holdings and Zijin Mining Group Company Limited(601899) of the company. In this announcement, Zhejiang Dun’An Artificial Environment Co.Ltd(002011) disclosed more details about this equity transfer Gree Electric Appliances Inc.Of Zhuhai(000651) mentioned that with regard to the disposal of Zhejiang Dun’An Artificial Environment Co.Ltd(002011) 9.71% shares, Dunan holdings had made a commitment to Gree Electric Appliances Inc.Of Zhuhai(000651) and that it was not allowed to transfer the company’s shares held by Dunan holdings to a third party except for centralized bidding, block trading with uncertain trading partners or being disposed through judicial channels without prior notification to Gree Electric Appliances Inc.Of Zhuhai(000651) and obtaining its written consent, Gree Electric Appliances Inc.Of Zhuhai(000651) didn’t know in advance.
The information disclosed in the announcement shows that on April 28, 2022, on the day when Gree Electric Appliances Inc.Of Zhuhai(000651) obtained the confirmation of Zhejiang Dun’An Artificial Environment Co.Ltd(002011) 29.48% share transfer registration, Dunan holdings and Zijin Mining Group Company Limited(601899) investment (Shanghai) Co., Ltd. (hereinafter referred to as “Zijin investment”) China Zheshang Bank Co.Ltd(601916) Hangzhou Branch (hereinafter referred to as “Hangzhou branch of Zhejiang Commercial Bank“) signed the share transfer agreement on Zhejiang Dun’An Artificial Environment Co.Ltd(002011) for 9.71% shares of the company (hereinafter referred to as “previous agreement transfer”) (hereinafter referred to as “share transfer agreement”).
Gree Electric Appliances Inc.Of Zhuhai(000651) said that the company communicated with Dunan holdings and Hangzhou branch of Zhejiang Commercial Bank at the first time after knowing the above situation through public channels on April 29, 2022, and timely sent a letter to inform Dunan holdings and Hangzhou branch of Zhejiang Commercial Bank that they did not agree to the previous agreement transfer and requested to terminate the share transfer agreement, and clearly proposed to transfer 9.71% of the shares of the company after further communication.
Gree Electric Appliances Inc.Of Zhuhai(000651) is intended to strengthen the control of Zhejiang Dun’An Artificial Environment Co.Ltd(002011) and the acquisition of “jiehu” Zijin Mining Group Company Limited(601899) .
On May 11, Zhejiang Dun’An Artificial Environment Co.Ltd(002011) announced that after receiving the notice from Gree Electric Appliances Inc.Of Zhuhai(000651) that Gree Electric Appliances Inc.Of Zhuhai(000651) is planning to transfer 9.71% shares of the company held by Dunan holdings through agreement. Because Gree Electric Appliances Inc.Of Zhuhai(000651) already holds 29.48% shares of Zhejiang Dun’An Artificial Environment Co.Ltd(002011) this agreement transfer will trigger the obligation of comprehensive tender offer.
The announcement disclosed that during the suspension period, Gree Electric Appliances Inc.Of Zhuhai(000651) promoted the transfer of this Agreement and the work related to this tender offer, and actively negotiated, repeatedly discussed and communicated with relevant parties. However, as of the disclosure date of this announcement, Dunan holdings and Hangzhou branch of Zhejiang Commercial bank failed to effectively coordinate the parties to reach an agreement on the core terms of this agreement transfer according to the written and oral agreements and commitments made before the suspension. Based on the above, after careful study, Gree Electric Appliances Inc.Of Zhuhai(000651) decided to terminate the planning of this agreement transfer and this tender offer.
Zhejiang Dun’An Artificial Environment Co.Ltd(002011) is mainly engaged in refrigeration components and is originally an important supplier of Gree Electric Appliances Inc.Of Zhuhai(000651) . On November 16, 2021, Gree Electric Appliances Inc.Of Zhuhai(000651) acted as the “White Knight” and planned to transfer 29.48% of the equity of Zhejiang Dun’An Artificial Environment Co.Ltd(002011) from Zhejiang Dun’An Artificial Environment Co.Ltd(002011) shareholders, involving a capital of 2.190 billion yuan. Meanwhile, Gree Electric Appliances Inc.Of Zhuhai(000651) participated in the private placement of Zhejiang Dun’An Artificial Environment Co.Ltd(002011) and subscribed 810 million yuan Gree Electric Appliances Inc.Of Zhuhai(000651) this action helped Zhejiang Dun’An Artificial Environment Co.Ltd(002011) remove the “mine” of high pledge laid by the controlling shareholder, and effectively alleviated the dilemma of Zhejiang Dun’An Artificial Environment Co.Ltd(002011) high debt.
Zhejiang Dun’An Artificial Environment Co.Ltd(002011) on May 11, 2022, the last trading day before the suspension, the share price closed at the limit, the closing price was RMB 793, and the total market value was RMB 7.27 billion.
