Zhejiang Tengy Environmental Technology Co., Ltd (SEHK:1527) entered into an agreement to acquire 95% stake in Zhejiang Tengy New Energy Company Limited from Tengy Group Limited for approximately CNY 51.2 million on May 25, 2023. Zhejiang Tengy New Energy Company has reported net assets of CNY 16.8 million in March 31, 2023. The transaction is subject to satisfaction of conditions: All the independent shareholders shall approve the agreement at the EGM, all necessary governmental, regulatory and other third parties' consents and approvals required to be obtained by Tengy Group, all necessary governmental, regulatory and other third parties' consents and approvals required to be obtained by Zhejiang Tengy Environmental Technology, subject to satisfied with due diligence review of Zhejiang Tengy New Energy Company conducted by Zhejiang Tengy Environmental Technology, obtaining of a valuation report from the valuer designated by Zhejiang Tengy Environmental Technology.

The completion shall take place within fifteen business days after fulfilment of all the conditions precedent under the agreement. Rainbow Capital (HK) Limited acted as financial advisor to Independent Board Committee and the Independent Shareholders.