Luxi Chemical intends to acquire 100% equity of Luxi Group

On the evening of April 17, Luxi Chemical, a leading chemical industry, announced that the company is planning to issue shares to purchase 100% equity of Luxi Group Co.
, Ltd.
(referred to as "Luxi Group") and related transactions, and the company's shares will be suspended from April 18
.

Luxi Chemical said that the company expects to disclose the transaction plan within 10 trading days, that is, to disclose relevant information as required before May 5, 2022.
According to the transaction plan, the company's securities will resume trading at the latest from the opening of the market on May 5, 2022 and terminate the planning of related matters, and promises that no major asset restructuring matters will be planned for at least one month from the date of the disclosure of the relevant announcement
.

Luxi Group is a state-owned holding company.
In May 1998, it initiated the establishment of Luxi Chemical to be listed on the Shenzhen Stock Exchange.
In 2020, it joined Sinochem Holding Co.
, Ltd.
(Sinochem for short)
.
The group currently has total assets of 32.
3 billion yuan and more than 12,000 employees.
It has industrial sectors such as basic chemicals, new chemical materials, fertilizers, design and development, and chemical engineering
.
The latest stock price of Luxi Chemical is 18.
2 yuan per share, with a total market value of 34.
7 billion yuan
.

The main counterparties in this transaction are Sinochem Investment Development Co.
, Ltd.
(hereinafter referred to as "Sinochem Investment"), Sinochem Investment (Liaocheng) Co.
, Ltd.
, Liaocheng Caixin Investment Holding Group Co.
, Ltd.
and Liaocheng Juju Equity Investment Co.
, Ltd.
, among them, Sinochem Investment is a subsidiary holding company of China Sinochem Group Co.
, Ltd.
(hereinafter referred to as "Sinochem Group"), holding 39% equity of Luxi Group, and the actual controller of Liaocheng Caixin Investment Holding Group Co.
, Ltd.
The State-owned Assets Supervision and Administration Commission of the Municipal People's Government holds 35% of the equity of Luxi Group, and Luxi Group and Liaocheng Caixin Investment Holding Group Co.
, Ltd.
are in the process of transferring all the above 35% equity to Liaocheng Caixin Investment Holding Group Co.
, Ltd.
related procedures
.

On April 15, 2022, Luxi Chemical, Luxi Group and the counterparty signed the "Intention Agreement on Absorption and Merger of Luxi Chemical Group Co.
, Ltd.
and Luxi Group Co.
, Ltd.
", stipulating that Luxi Chemical will pass all shareholders of Luxi Group to all shareholders of Luxi Group.
The way of issuing shares will implement the absorption and merger of Luxi Group, and the A-shares planned to be issued by Luxi Chemical will apply for listing on the Shenzhen Stock Exchange
.

After the implementation of this merger by absorption, Luxi Group will cancel its legal personality, and the shares of listed companies held by Luxi Group will be cancelled.
Sinochem Investment, Sinochem Liaocheng, Liaocheng Caixin and Juju Investment will directly hold Luxi Chemical New issued shares
.
The transaction price of Luxi Group, the price and number of new shares issued by Luxi Chemical, and other unresolved matters, the official "Luxi Chemical Group Co.
, Ltd.
Absorbing and Merging Luxi Group Co.
, Ltd.
Agreement by Issuing Shares" signed by all parties.
and its supplementary agreement shall be stipulated separately
.