Apex to be Acquired, Listed on China’s Stock Market

According to the Zhuhai Daily, Apex, one of the largest manufacturers and suppliers of inkjet and laser cartridge chips, will be acquired by Wanlida (Zhuhai Wanlida Electric Co., Ltd) and become listed on China’s stock market.

Wanlida, a professional, high-tech enterprise in electric power automation in Zhuhai, China, became a listed company in 2007, but it has since been suspended in the Chinese stock market for over three months. It recently released its asset reconstruction plan in order to acquire Apex. After the deal, Wanlida will focus on IC (integrated circuit) design, and at the same time, Seine (Zhuhai Seine Technology Co., Ltd.), the parent company of Apex, will become the shareholder of Wanlida through an asset exchange which accounts for 66.01% shares.

Such a transaction is called a back door listing, sometimes referred to as a reverse takeover, reverse merger, or reverse IPO. It occurs when a privately-held company that may not qualify for the public offering process purchases a publicly-traded company.

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