Dacheng has advised Zhejiang Provincial Economic Construction Investment (ZPECI) on the acquisition of Hangzhou Ozma CNC Equipment (Ozma).
In late March, an equity investment agreement was signed by ZPECI and Ozma, marking a successful step by ZPECI to strengthen its capacity of advanced equipment manufacturing via M&A.
The Dacheng Hangzhou office’s capital markets and finance lawyers, led by senior partner Jiang Yinhua, advised ZPECI on the transaction.
Established in 1991, Ozma is a provincial-level high-tech enterprise engaging in the R&D, production and distribution of numerically controlled filament-winding machines and complete sets of automated production lines for downstream manufacturers of automotive parts, electronic components, motors, instruments and meters.
By the third quarter of 2013, its Deqing-based production site had completed first-phase construction and was subsequently put into use. The company is now capable of producing 500 numerically controlled filament-winding machines a year, or ¥270m (£26m) of annual output at full capacity.
The acquisition in question involved ¥260m in equity transfer and capital increase. It signals a concrete step taken by an SOE in Zhejiang province to transform and upgrade itself as well as engage in more effective investment.