Leyard announced recently it will acquire Guangzhou Leafun Culture Science and Technology and Glux Visual Effect Tech.
Leyard is to acquire 100% of Guangzhou Leafun Culture Science and Technology’s shares with cash and 99% of Glux Visual Effect Tech shares will be transacted from 10 company investors. Leyard will start fundraising for the acquisition.
Negotiations between Leyard and Leafun are based on the No. 1384 [2014] evaluation report provided by the same asset valuation group confirmed a 100% stake in Guangzhou Leafun Culture Science would value RMB 647 million (US$ 101.7 million).
Based on a separate evaluation report No. 1379 [2014] provided by the same Chinese financial institute, the total value of a 99% stake in Glux Visual Effect Tech’s from 9 major investors including Xia Lan, president of the company, is RMB 240 million (US$ 377.3 million). Leyard will be acquiring the shares through cash and shares. The transaction involves RMB 72.6 million (US$ 11.4million) paid in cash, while RMB 168 million (US$ 26.4 million) worth of the transaction will be in the form of non-public issuance of shares.
