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Jatenergy to acquire LED lighting company

Last updated: 14:30 24 Mar 2015 AEDT, First published: 13:30 24 Mar 2015 AEDT

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Jatenergy (ASX:JAT) has agreed to acquire Nanyang Ling Feng Electronic Technology Company, a group of Chinese manufacturing companies producing LED lights which are distributed and sold globally.

It is active in China, U.S. and Japan and seeking further expansion into Europe and Australia with a new brand name of Jatenergy to promote its Australian linkage and promote its high quality products in the growing LED market space.

The all-scrip offer for Nanyang is subject to shareholder approval and certain conditions precedent. The acquisition is expected to be completed by June 2015.

In the year ended December 2013, Nanyang derived Rmb3.4 million (AUD $695,000) in revenue.

The purchase consideration is to be satisfied by the issue by JAT of 85,714,286 fully paid ordinary shares. JAT will also issue performance share rights to the management of Nanyang based on EBITDA milestones.

JAT may be required to re-comply with the ASX admission requirements of Chapters 1 & 2 of the ASX Listing Rules.

The company does not immediately intend to sell any existing assets, which include coal projects in Indonesia.

JAT is lightly valued at present, with a market capitalisation of $2.6 million.

 

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