Foton announced that DONGFANG Precision will make acquisition of 10% Pride Power Company stock held by Foton with the price of 475 million Yuan. And they will pay for the acquisition with stock and cash.
In 2010, Foton equity invested 10 million Yuan to found Beijing Pride New Energy Power Company, and its major business is buttery R&D, production and marketing. And Pride main financial data is total assets of 1 billion 241 million Yuan, net assets of 206 million Yuan, operating income of 1 billion 134 million Yuan and net profit of 151 million Yuan.
Up to now, the ownership structure of Pride as follow: Pulead Industry Technology Co., Ltd. holds 38% of the shares, BAIC Capital holds 24% of the shares, CALT Buttery holds 23% of the shares, Foton holds 10% of the shares and another company holds 5% of those. Xu Heyi is the enterprise legal person and chairman.
Before this acquisition, Foton was expected that the sale profit may took over 50% of the net profit. But the final bargain price is up to 475 million Yuan and that means value of Pride assessment touched 4.75 billion Yuan. To Foton, the transaction amount can take 117% of the whole year net profit. The ROI is up to 4750% that we can call Foton the money manager.
