This is the state-owned company that Eontec sought and obtained 430 million yuan in investment in a non-public offering. That had been in the works for years.
I don't know if the transfer of control was planned, but the investment was. That makes me believe that this is a part of the plan, not some hostile takeover. If it is part of the plan, it means that Li felt the investment and relinquishing of majority ownership was worth the price paid. I also suspect that he retains effective control when his share is paired with that held by other investors.
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From Josh's post on the 2017 Eontec Board of Directors commentary:
"In October 2017, the company received the “Approval of Approval of Non-Public Issuance of Shares of Eontec issued by the China Securities Regulatory Commission (CSRC [2017] No. 1872). Up to now, the company has successfully completed the non-public issuance of 50 million shares (Zhuzhou State-owned Assets Investment Holding Group Co., Ltd. full-time placing company, this non-public issuance of 50 million shares) and the listing of new shares.
The company's non-public offering of shares to be introduced by the purchaser Zhuzhou State-owned Assets Investment Holding Group Co., Ltd. is a state-owned investment enterprise group in Zhuzhou City and a 100% wholly-owned enterprise in Zhuzhou SASAC. Its main scope of business is: State-owned assets investment. And operations; financial investment and services; and other supporting industry operations and management related to the main business. The companies that it invests in include industries, agriculture, finance, real estate, tourism, and parks. The manufacturing-related companies include Zhuzhou Smelter Group Co., Ltd., Weichai Power ( 000338 ) Co., Ltd., and Zhuzhou Tianqiao Crane ( 002523 ) Machinery Co., Ltd. Co., Ltd., and some of them have a certain correlation with the company's business, which is conducive to the company's in-depth cooperation with Zhuzhou City State-owned Assets Investment Holding Group Co., Ltd. subordinated investment companies.
The issuance of funds raised in the issuance will be directed to the construction project of Yi'an Yunhai Light Alloy Precision Die Casting Production Base, the expansion of amorphous alloy (liquid metal) precision structural parts and the construction of an amorphous alloy (liquid metal) research and development center. After the implementation of the above projects, It will help the company to consolidate its existing competitive advantages and further enhance its position in the industry."
4. Corporate Governance
Company will strictly follow the requirements of laws, regulations, and regulatory documents such as the “Company Law,” “Securities Law,” and “Code of Corporate Governance for Listed Companies,” and continue to improve the corporate governance structure to ensure that shareholders can fully exercise their rights and ensure the board of directors. Ability to exercise its powers in accordance with laws, regulations, and articles of association, and make scientific, prompt, and prudent decisions to ensure that independent directors can perform their duties conscientiously, safeguard the company's overall interests, especially the legal rights of small and medium shareholders, and ensure that the board of supervisors can independently and effectively exercise The right to supervise and inspect the directors, senior management personnel, and company finances provides institutional guarantees for the development of the company.
AI
