Kunming Machine Tool, once seen as a potential turnaround story after its major shareholder transferred equity to Ziguang Zhuoyuan Equity Investment Co., Ltd., and plans for a non-public offering involving Enlightenment and King Service were announced, saw its stock surge. However, the company has now issued a shocking announcement, revealing that both the equity transfer and the private placement have been terminated, raising concerns about possible delisting risks.
According to the recent disclosure, the State-owned Assets Supervision and Administration Commission of the State Council had approved the equity transfer on February 8, 2016. However, the conditions for the agreement to take effect were not met, and the contract never came into force. On February 15, the company received notice from Shenyang Machine Tool Group (Jiji Group) and Ziguang Zhuoyuan that the share transfer agreement was automatically terminated, effectively ending the deal. As a result, the planned non-public offering by Ziguang Zhuoyuan also collapsed, with Qidi Kefu confirming it would no longer subscribe to the shares.
Looking back, Kunming Machine Tool first announced in October 2015 that its largest shareholder, Jiji Group, intended to transfer 25.08% of its shares through public bidding. By November, the transferee was confirmed to be Ziguang Zhuoyuan, and the "Share Transfer Agreement" was signed at a price of 6.78 yuan per share, totaling 903 million yuan. Shortly after, the company revealed a plan to issue 74.425 million new shares to Qidi Kefu and Shenzhen Wanan Xingye at 9.44 yuan per share, aiming to raise up to 700 million yuan for debt repayment and working capital.
In addition, the company received regulatory letters from the Yunnan Securities Regulatory Bureau and the Shanghai Stock Exchange regarding the equity transfer and the non-public offering. The company explained that the delay in finalizing the agreement led to an automatic termination clause being triggered. Despite receiving the final version of the agreement on November 10, 2015, the company failed to promptly review and release the announcement. No further clarifications or updates were issued, which led to insufficient risk warnings.
The company initially believed the process was proceeding smoothly, only noting the uncertainties related to state asset approvals and performance risks. But as the deadline approached on February 4, 2016, it became clear that the transaction could not be extended. In response to the delisting risk, the company stated it would take proactive measures, including introducing quality assets and improving operational performance.
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UL 94V-2 or UL 94V-0 flame retardant housing
Anti-falling screws
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