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Xiaomi Details
May 23, 2020

Xiaomi Group Plans to Acquire a 27.44% Stake in Zimi for USD 103 Million

Xiaomi Group issued an announcement that on May 21, 2020, the company entered into a Zifone agreement with Zifone and a shareholder seller agreement with a shareholder seller. A total of 27.44% of the sales shares, the total consideration is about USD 103 million.
1) The announcement shows that approximately USD 25.78 million of the consideration was settled in cash; and approximately USD 77.06 million was settled by the company allotting and issuing 54.379 million consideration shares listed as fully paid. The issue price of the consideration shares is HKD 10.984 per share, a 13.5% discount to the closing price of HKD 12.7 per share on May 21. The consideration shares account for approximately 0.23% of the enlarged issued share capital.
2) The acquisition provides a good opportunity for the group. The target company has technical and R & D capabilities in the power supply and multiple IoT fields, which can improve the company's technological competitiveness in the 5G + AIoT field. The technology of the target company in the field of power supply can be applied to the company's mobile phones and many other IoT products to improve the competitiveness of the company's products and realize the standardization of product power supply to save costs.

Associated Companies: VIVO

Source: xueqiu