On 1 November 2019, the ChiNext-listed company Guangdong DaZhi Environmental Protection Technology Incorporated Company ("DaZhi") announced that the transfer of approximately 16.68% of its shares from its original controlling shareholder, actual controller and another shareholder ("Transferors") to Hunan Hengpa Power Partnership (Limited Partnership)("Hengpa") has been completed. Meanwhile the Transferors unconditionally and irrevocably permanently waive the voting rights connected to approximately 41.2% of DaZhi's shares.
DaZhi was listed on the ChiNext Board of the Shenzhen Stock Exchange on August 9, 2016. After the transaction, Hengpa becomes the controlling shareholder of DaZhi. In this transaction, Hengpa acquires a part of the shares and the transferors waive a large proportion of their voting rights, changing the controlling shareholder and actual controller of DaZhi to Hengpa.
Hengpa is an investment vehicle jointly established by Living Power New Energy Group Co., Ltd. and Hengyang Hongqi Investment Co., Ltd. Hengpa does not rule out the possibility of injecting new energy power battery assets controlled by its actual controller into the listed company within the next 12 months.
On 18 October 2019, the China Securities Regulatory Commission officially issued the "Decision to Amend the Measures for the Administration of the Material Asset Restructuring of Listed Companies". This decision conditionally "loosens" the restrictions on backdoor listings on the ChiNext Board and allows assets from companies in new high-tech and emerging sectors related to national strategic industries to be restructured on the ChiNext Board.
Llinks, as the legal counsel of Hengpa, designed the deal structure, conducted the due diligence investigation on the target companies, drafted transactional documents and issued legal opinions to the Shenzhen Stock Exchange.
