CATL buys 45% stake in a Hangzhou green-energy company for US$598 million
As part of the deal, CATL will be entitled to appoint one board director and one general manager of the listed company
Contemporary Amperex Technology Ltd, or CATL, plans to buy a 45 per cent stake in the parent of a Shenzhen-listed renewable-energy company, as the world’s biggest maker of lithium-ion batteries for electric vehicles seeks to expand its investments in green energy amid the global oil shock.
CATL signed a framework agreement with two shareholders of Hangzhou Zhonhen Technology Investment on Wednesday, agreeing to pay 4.09 billion yuan (US$598.5 million) for the deal, Hangzhou Zhonhen Electric, the listed subsidiary of the acquired company, said in a statement to the Shenzhen exchange.
CATL would pay about 2.9 billion yuan in cash for the acquisition and the rest would be funded by a 99.7 per cent stake in one of its tech units in Shenzhen, the statement said.
CATL and Zhonhen Electric would collaborate in the fields of green information and communications technology (ICT) infrastructure, transport electrification and smart power systems, the statement said.
Shares of Zhonhen Electric surged 10 per cent to 31.93 yuan on Thursday. CATL rose 0.3 per cent to 389.99 yuan in Shenzhen and its Hong Kong-listed stock fell 1 per cent to HK$633.
CATL has been expanding its business scope as China steps up efforts to boost usage of renewable energy. Chairman Robin Zeng Yuqun said last month that the southeast Fujian province-based company would ramp up spending on research and development to build a comprehensive industrial ecosystem from upstream mining to downstream applications and recycling.