Seres Group to Acquire Minority Stake in Seres Automobile for $1.329 Billion
TapTechNews August 11th news, on the evening of August 9th, Seres Group announced that the company plans to acquire the 19.355% equity of Seres Automobile held by the minority shareholder Jinxin Fund of its controlling subsidiary Seres Automobile, and the transaction amount is about 1.329 billion yuan. After this transaction is completed, the company's shareholding ratio in Seres Automobile will increase from 80.645% to 100%, and the scope of the company's consolidated financial statements will not change.
TapTechNews learned from the announcement that as of March 31, 2024, the net assets of Seres Automobile is -10.462 billion yuan. The transaction price of this transaction is significantly higher than the book value. However, considering the original investment amount of the counterparty in the target company and the reasonable capital cost in the market, as well as the company's continuous large-scale R & D investment for many years, and the fact that the target company has achieved operating profitability in the first quarter of 2024, this acquisition of minority shareholder equity is conducive to increasing the net profit attributable to the parent company's shareholders, further improving the company's profit level, and is conducive to protecting the interests of all shareholders of the company, especially the interests of small and medium shareholders.
The announcement shows that Seres Automobile and its affiliated subsidiaries are mainly engaged in the R & D, manufacturing, sales and service of new energy vehicles and core component assemblies, and the main products are AITO Wenjie M9, M7, M5 series models. Seres Automobile and its affiliated subsidiaries have strong R & D strength, hold core technologies such as the whole vehicle, power assembly, electric drive assembly, etc., and the independent R & D and application capabilities are in the leading position in the industry. As of June 30, 2024, it has more than 1,700 authorized patents and more than 5,200 applied patents.
Seres Group wrote that the intelligent factories under Seres Automobile all cover the whole vehicle production processes such as stamping, welding, painting, and final assembly, and currently mainly produce the AITO Wenjie series models; with the continuous improvement of operating quality and the acceleration of sales growth and the appearance of scale effects, the target company has achieved operating profitability since the first quarter of 2024, and has good development space and prospects.