Compal Electronics, Inc. (hereinafter referred to as "Compal"; stock code: 2324) today pleased to announce that, as pursuing the rapid growth of internet of things, smart clouds, and related smart hardware devices market opportunities, as well as strengthening the cooperation with the key customer, its 100% owned subsidiary, Compal Information Technology (Kunshan) Co., Ltd. (hereinafter referred to as” CIT”), will enter into the Investment Agreement with Leshi Zhixin Electronic Technology (Tianjin) Limited (hereinafter referred to as “Leshi Zhixin”) for an investment by way of new capital injection. Upon completion of this investment, CIT will hold 2.1507% equity interest in Leshi Zhixin, at the consideration of RMB 700,000,000. Compal believe this investment will strengthen the strategic cooperation between Compal Group and Leshi Group, which will contribute to the overall interests of the Company and shareholders.
Details of the Investment Agreements are set out below.
The Investor: Compal Information Technology (Kunshan) Co., Ltd.
The Target Company: Leshi Zhixin Electronic Technology (Tianjin) Limited
Other Parties: Existing shareholders of Leshi Zhixin before the Investment Agreement was entered into
2. Conditions Precedent and Payment:
The closing is conditional upon and subject to the fulfillment of the following conditions: (i) there is no material adverse change affecting Leshi Zhixin and Leshi Internet, and (ii) there is no material default by other investors of the new capital injection, (iii) Leshi Zhixin has obtained the necessary shareholders’ resolution for the capital increase, (iv) other documents related to this transaction have been executed and the relevant contracting parties have duly performed their obligations thereunder, (v) warranties made by Leshi Zhixin and the relevant shareholders remain true and correct and there is no material default under any of the transaction documents, and (vi) there is no government order or applicable law prohibiting or restricting this investment or the performance of the transaction documents. The closing of this investment is expected to occur by June 21, 2017 (or other day agreed upon by both parties).
3. Undertaking: Pursuant to the Investment Agreement, Leshi Zhixin commits the completion of filing with the China Securities Regulatory Commission (CSRC) regarding the reorganization of the equity interest in Leshi Zhixin into the listed company before December 31, 2019.
4. Strategic Cooperation: Compal Group and Leshi Group to launch a full range of cooperation, on the basis of mutual benefit. The two parties shall be the priority partner with each other, in the field of information technology, television audio and video devices, smartphone, internet of things, smart clouds, and related smart hardware devices.
5. Other matters to be stated: Details of the rights and obligations of the Company and related parties are subject to the confidentiality clause between CIT and the relevant parties.
【About Leshi Zhixin】
Leshi Zhixin is a subsidiary of Leshi Internet, a listed company (Stock Code: 300104 SZ), and is engaged in the business of the research and development, production and sales of intelligent Internet TV under the brand of Leshi Super TV and carries the big screen ecological business of Leshi Internet. Since the launch of Super TV in the market, as of the end of 2016, users of Leshi big screen had exceeded 10 million, which truly realized the coverage of 10 million home users and formed extremely strong user viscosity. Currently, Leshi Super TV has entered the first camp for TV sales brands and is the first brand for intelligent TV. In the future, with the continued hot sales of Super TV and backing by the rich video content of Leshi Internet, Leshi Zhixin will conduct a variety of businesses such as advertising operations, online distribution, application distribution, big screen games and big screen shopping based on high performance big screen intelligent TV and large user groups and realize profits by diversified means.
【About Compal Electronics】
Established in 1984, Compal Electronics is specialized in designing and manufacturing of notebook computers and has become the industry leader. Further, it has been taking firm strides into developing 5C-related products include notebooks, tablet PCs, smartphones, television, wearable devices, and Internet of Things (IOT) products…etc. With the experienced management team, talented R&D resources, sophisticated supply chain integration, and efficient global logistic, Compal’s products have been highly recognized by the global top-tier brand customers. Compal is ranked 4th of “Taiwan Top-2000 Manufacturers” in 2016, and also selected in “FORTUNE” Global Top-500 Companies. With 6,000 high quality technology talents and innovation results, Compal is ranked 15th on Global Innovation in ”IF Award”. More information, please visit http://www.compal.com.
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