Neusoft Group Ltd will acquire its parent through a share swap,
which will double the market value of the Shanghai-listed software
vendor to 520 million yuan (US$70.27 million), Neusoft said in a
statement yesterday.
Chinese software firms, which grew most rapidly, need to boost
economies of scale to compete internationally, the Ministry of
Information Industry said.
Neusoft has received approval from regulators, including the
China Securities Regulatory Commission, to buy its parent's assets
via a share swap of 1 to 3.5, according to the company's statement
to the Shanghai Stock Exchange.
After the purchase, the firm will be valued at 520 million yuan
from 280 million yuan now.
"The deal is a milestone in the company's history and it will
continue to grow through the resources acquired from the parent
firm," said Neusoft's chairman Liu Jiren in a Chinese-language
statement.
(Shanghai Daily December 27, 2007)
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