General Science signals potential ownership change

Wuxi, China – Jiangsu General Technology Co. (General Science) has announced that its controlling shareholder, Hongdou Group has signed a share transfer intent agreement that could see a significant change in the ownership structure of the company.

In a 23 Jan stock exchange filing, General science said Hongdou Group had agreed to transfer 24.41% of its shares to Guangzhou Industrial Investment Holding Group Co., the parent group of Chinese tire maker Wanli Tire.

The move, it noted, could potentially lead to a change in control of the company.

Hongdou Group currently holds 657,320,290 shares, representing 41.35% of the company's total equity, and together with affiliated parties holds 43.81%.

Under the intent agreement, Guangzhou Industrial or its designated entity will acquire 24.41% of General Science shares to become the controlling shareholder.

Guangzhou Industrial, a state-owned entity, is 90% owned by the Guangzhou municipal government and is involved in industrial investments, asset management, real estate and trade.

The transaction is subject to due diligence, the signing of a formal share transfer agreement, and regulatory approvals, including state-owned asset clearance.

The agreement includes a three-month exclusivity period, during which Hongdou Group cannot negotiate similar transactions with other parties.

The deal is not classified as a tender offer or a related-party transaction and will not impact General Science’s normal operations, said the filing.

The transaction, it said, is ‘still in its early stages, and significant uncertainties remain.’