BDO Runda supports Wu Changjiang's board of directors

The storm of NVC Lighting continued in 2012, and this storm was upgraded again in 2013.

On December 27th, 2012, BDO Runda, one of the largest LED chip production enterprises in China, announced that it plans to obtain a total of 20.05% of NVC Lighting through its wholly-owned subsidiary BDO Runda International (Hong Kong) for a total consideration of 1.34 billion yuan. The shares became the largest shareholder of NVC Lighting, and Wu Changjiang became the second largest shareholder of BDO Runda. For this lightning alliance, the market did not buy it. On the same day, NVC Lighting's share price fell 9.3%, and BDO Runda's share price fell 3.99%.

For BDO Runda's acquisition of NVC Lighting, there are different voices. Will Wu Changjiang continue to hold NVC lighting in the future? Does Wu Changjiang use BDO Runda to enter NVC's board of directors? In this regard, Bundesliga Runda executive secretary Tang Fei told the reporter: “Wu Changjiang is the starting shareholder and former chairman of NVC Lighting. We support Wu Changjiang’s return to NVC Lighting's board of directors and management.”

Cross-shareholding

NVC Lighting announced on December 27, 2012 that NVC Inc, a wholly-owned subsidiary of Wu Changjiang, the founder and principal shareholder of the company. Signed an equity transfer agreement with BDO Runda International (Hong Kong) Co., Ltd., a wholly-owned subsidiary of BDO Runda. Pursuant to the transfer agreement, NVC transferred approximately 373 million shares of NVC Lighting to BDO Runda (Hong Kong), representing approximately 11.81% of the issued share capital of NVC.

In addition, between December 11 and December 21, 2012, BDO Runda has purchased 260 million shares of NVC Lighting in the form of on-site and off-site trading of the Hong Kong Stock Exchange, accounting for approximately NVC Lighting. 8.24% of the share capital. Therefore, after the completion of the share transfer, BDO Runda will increase its stake in NVC Lighting to 20.05%, becoming the single largest shareholder of NVC Lighting. Saifure Asia and Schneider Electric are still the second and third largest shareholder of NVC Lighting, with a shareholding ratio of 18.48% and 9.21%, respectively. Wu Changjiang holds only 214 million shares of NVC Lighting's shares, accounting for approximately 6.79% of the company's issued share capital.

However, it is worth noting that the shares held by BDO Runda and Wu Changjiang accounted for 26.84% of the total share capital of NVC, which is close to the number of NVC Lighting shares held by the two major shareholders of SAIF Asia and Schneider Electric.

In addition, although Wu Changjiang gave up his position as a major shareholder of NVC Lighting, he will strategically invest in BDO Runda and become the second largest shareholder of the company.

According to BDO Runda's "Private Stock Issuing Plan", the company's non-public issuance is controlled by the company's controlling shareholder, Wuhu Dehao, and Wu Changjiang, the company's proposed strategic investor. The price of the non-public issuance of shares is 5.86 yuan/share, and the number of non-public offerings is not to exceed 230 million shares, of which controlling shareholder Wuhu Dehao Investment subscribes for 100 million shares and Mr. Wu Changjiang takes up 130 million shares. The non-public issuance of stocks may not be transferred within 36 months from the end of the issuance.

If the above proposal is passed, Wu Changjiang will become the second largest shareholder of BDO Runda.

The non-public issuance raised funds of about 1.347 billion yuan, BDO Runda said that the non-public issuance of shares is also to supplement the company's liquidity funds. The company plans to purchase approximately 20% of the shares of NVC Lighting, which requires a total of approximately HK$1.654 billion in equity transfer payments, which is just like the private placement of funds.

The two strong teams want to "win"

For Bundesliga Runda and NVC lighting flash marriage, both sides hope to achieve a win-win result.

At present, NVC Lighting has 36 operating centers and more than 3,000 brand stores in the country to form a complete customer service network. In the world, NVC Lighting has established operating agencies in more than 30 countries and regions and launched an international marketing strategy.

“B&D Runda places great importance on the complementary advantages of both brands, channels, technologies and products.” Deng Fei said, “The company is very optimistic about the great development prospects of LED lighting and lighting industry. This company acquired Hong Kong’s lighting Shares are not a simple financial investment but a major industry investment. The company believes this acquisition is a landmark event for China's LED industry and lighting industry."

On the last day of 2012, Wu Changjiang stated on his microblog: "The development and popularity of LED exceed everyone's expectation, and traditional lighting companies face enormous challenges. Without transformation, they will certainly be eliminated. NVC's advantage lies in its brand and Channels, and DHL's cooperation is a strong alliance, has a strong competitive advantage in the LED industry chain, NVC and DHL are a win-win situation."

However, it is worth noting that, according to the information disclosed by BDO Runda, the cooperation between the two companies has only entered the in-depth stage in the recent period. The combination of interests has become one of the ways of cooperation between the two parties.

In November 2012, BDO Runda and Wu Changjiang Holdings Canada CRS Electronics Inc. The agreement was signed and agreed: BDO Runda is CRS Electronics Inc. Provides production services in China, including "Energizer" and or "ICE" brands of LED lighting products, as well as CRS Electronics Inc. Specified other products for CRS Electronics Inc. Sales in North America. It is expected that the contract will be signed within three years of CRS Electronics Inc. Each year will purchase more than 25 million US dollars of LED lighting products from BDO Runda. The agreement is indefinite, but the party to the contract can notify the other party to terminate the agreement 180 days in advance.

However, in this regard, the outside world thinks that the two sides must achieve more success in achieving a win-win result. It is not an overnight move.

Wu Changjiang's return to be just around the corner

BDO Runda Lightning enters NVC Lighting. The company's management and operations are the topics of concern. BDO Runda said that through the acquisition of NVC Lighting, the company will become the single largest shareholder of NVC and will enter its board of directors. As for when to enter the board of directors of NVC, Tang Fei, the director of BDO Runda, told reporters that it was necessary to follow the rules of the Hong Kong Stock Exchange.

As of today, although Wu Changjiang has returned to NVC, he has not yet entered the board of directors. According to media reports, Wu Changjiang will return to the board of directors before the Spring Festival.

“As the largest shareholder of NVC Lighting, BDO Runda will fully support the development of NVC Lighting. Wu Changjiang is the founding shareholder and former chairman of NVC Lighting. We support Wu Changjiang’s return to NVC Lighting's board of directors and management. "Deng Fei told reporters," This is based on the needs of NVC Lighting's operation and development, and in line with the interests of NVC shareholders, we believe that NVC lighting investors will understand and actively support."

In addition, Deng Fei also revealed: "From the perspective of cooperation and common development between BDO Runda and NVC Lighting, I think Wu Changjiang may be involved in the management of BDO Runda and even enter the company's board of directors."