Media365
CATL-owned Wending Investment, Guoxin Micro subsidiary Tongxin Micro and five affiliates have agreed to establish Tongxin Micro Technology with a registered capital of 300 million yuan (US$43 million), according to a Thursday filing to the Shenzhen Stock Exchange.
With its 153 million yuan investment, Tongxin Micro holds a controlling 51 per cent stake in the new firm, while Wending Investment’s 15 million yuan outlay gave it a 5 per cent shareholding, according to the filing.
Four employee stock platforms under state-owned Tsinghua Unigroup have a combined 24 per cent stake.
The newly formed entity was set to acquire the automotive domain controller chip business from Tongxin Micro for 193 million yuan. Based on the asset’s book value, that price represented an appraised appreciation rate of 3,723 per cent.
According to Guoxin Micro, a company with roots in China’s prestigious Tsinghua University, having CATL as a partner would help deepen strategic ties with the new firm’s target customers.
The automotive domain controller chip business would require significant capital investment and a long investment cycle, Guoxin Micro said in its filing. “By introducing external investors, the company will only bear losses in proportion to its equity stake.”
