Under the terms of stock purchase agreement and associated cooperation agreement, CNPEC is committed to buy the complete suite of non-safety automation and control products from Hollysys on exclusive basis.
The transaction will reduce Hollysys’ ownership in CTEC from 50% to 40% and increase CNPEC’s ownership from 50% to 60%, which will result in investment income of about CNY13m for Hollysys.
Hollysys chairman and CEO Changli Wang said the company will also be able to further expand its proprietary non-safety automation and control solution market together with CTEC both in Chinese and international market.
"The divestiture transaction strengthens our cooperation with China Guangdong Nuclear Power Holdings Corp (CGNPC), streamlines business focuses between Hollysys and CTEC, and further enhances leadership and profitability of our nuclear business," Wang said.
Hollysys is a provider of automation and control technologies and applications in China.
CNPEC is a wholly-owned subsidiary of CGNPC.
CTEC is engaged in engineering design of digital Instrument &Control systems, system integration, and technical services for nuclear power plants in China.
