Baolilai Was Approved to Acquire an Enterprise Invested by JD Capital

2014-12-29

On December 26th, Guangdong Baolilai Investment Co., Ltd. (stock name: Baolilai; stock code: 000008) passed the approval of Merger, Acquisition and Reorganization Committee of CSRC on material assets reorganization, and resumed trading on 29th.

Baolilai would purchase 100% stocks of Beijing Sheenline Technology Co., Ltd in the form of issuing stocks and cash payment. Beijing Sheenline Technology Co., Ltd invested by JD Capital will be wholly owned by Baolilai after transaction.

Sheenline has been committed to the technology R&D, equipments manufacture and service assurance of safety monitoring, maintenance, system integration and information in the rail transit industry. After years of unremitting effort, many techniques have reached the international advanced level. Through this acquisition, Baolilai would transform through investing in profitable rail transit and urban rail transit businesses.

According to publically disclosed information, Sheenline’s book value was 380 million yuan, but the purchasing price was estimated to 1.844 billion yuan, an increasing rate of 381.71%. In 2011, JD Capital invested in Sheenline and held 20% of its shares as the second largest shareholder. After this acquisition, JD Capital would hold 7.8% of its shares as the third largest shareholder and gained a 7-fold paper profit until the close of the resumption day.