Ninestar New Acquisitions Not Yet All Onboard
Chinese-based Topjet has not joined other companies acquired by the Ninestar Group. The company, officially called Topjet Technology Co., Ltd, has declined to go ahead with the deal allegedly worth RMB¥214 million (US$30.16 million).
On March 1, China-based Ninestar announced it would acquire the remaining shares from shareholders of three different Chinese consumables manufacturers. According to chinaipo.com the other two companies are Kingway Image Co., Ltd (Kingway) and Zhuhai National Resources & Jingjie Printing Technology Co., Ltd (Ink-Tank).
Apparently, one shareholder, ZhouXin from Topjet (Tuojia Technology) applied to withdraw from the deal, stating maintaining current equity structure is more advantageous to Topjet’s development.
Ninestar had planned to buy the remaining 49% shares of Topjet for RMB¥214 million (US$30.16 million), of Kingway for RMB¥196 million (US$27.62 million) and of Ink-Tank for RMB¥125 million (US$17.62 million). The transactions are being paid in full by the issuing of shares.
Since Ninestar’s acquisition of 51% of Topjet’s shares in 2017, its strength had greatly improved, with this being the reason for Topjet’s shareholder not wanting to advance with the final portion of the sale. So, they are not on board. Yet.
Ninestar is now communicating with Topjet management over its withdrawal from the transaction. Ninestar claims it will disclose adjustments, transaction procedures as well as other important information in time, based on the outcome with Topjet.