TOKYO, Apr 30 (Pulse News Wire) – Ferrotec Corporation (6890.T) corrected certain details related to its subsidiary FTSVA's share purchase agreement with FLH. According to the revised information, FTSVA will acquire FLH shares through a stock transfer agreement, issuing FTSVA shares and convertible bonds to FLH shareholders.
The transaction involves a total valuation of approximately ¥65.5 billion Chinese yuan and a share price of 16.3 Chinese yuan per share, confirmed by a recognized evaluation firm. Additionally, FTSVA will issue convertible bonds with a four-year term and a conversion price linked to the performance of the company’s stock. In the event that FLH’s earnings fall below projected levels over three years, FTS will compensate FTSVA based on a predetermined formula.
The compensation amount will be calculated as the difference between committed and realized profits divided by the sum of annual commitments minus previously compensated amounts. FTSVA will hold a shareholder meeting to approve the buyback of compensatory shares at a price of 1.00 yuan per share. Following the transaction, FTS’s stake in FTSVA will decrease from 50.24% to 50.24%.
The company noted that legal issues with the transaction structure have been reviewed and resolved by local law firms.
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