Ozner Water International Holding Limited (“Ozner Water” or “the Company”, HKSE: 2014, and its subsidiaries collectively the “Group”) is pleased to announce that, the Group has entered into an agreement to acquire 51% interest in Guangdong Bili Drinking Water Equipment Company Limited (“Guangdong Bili”), a drinking water machine service provider to educational sector in the PRC, at approximately RMB174 million.
Guangdong Bili specializes in the provision of drinking water machines to educational institutions and the educational sector in the PRC. It has invented lukewarm energy-saving drinking water machines for campus usage in the PRC. Its products focus on energy-saving, safety and high volume, which are widely used in public places with high demand for water supply, particularly educational institutes such as kindergartens, primary schools and secondary schools. Guangdong Bili’s production facilities have a high annual production capacity. It also has an extensive distribution network and owns a number of patents. For the year ended 2016, profit before taxation amounted to approximately RMB1.95 million.
The Consideration for the acquisition shall be settled as to approximately RMB130 million in cash, and as to approximately RMB43.48 million by the Company allotting and issuing 25,066,535 Consideration Shares at the Issue Price of HK$1.966. The Consideration Shares represent approximately 1.21% of the issued share capital of the Company as enlarged by the issue of the Consideration Shares.
Ozner Water’s managementand Mr. Wu Zongquan, Chairman of Guangdong Bili, officiated the signing ceremony today by steering a helm together, representing the collaboration of two leading companies to achieve economies of scale.The Group’s management said, “Ozner is a leading drinking water machine supplier in the PRC market. The acquisition provides a valuable investment opportunity to diversify the Group’s product mix and extend its customer reach. This creates synergy with the Group’s existing business and enhances the Group’s long-term growth potential. The Acquisition is also in line with its business plan to advance its business in public water purification. Furthermore, patents owned and technology utilized by Guangdong Bili, as well as its manufacturing capabilities will be beneficial product innovation of the Group.”