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Hangzhou Capital Plans to Acquire Yingde Holding Group Author/Source: Sinochem New Network Date: May 9, 2023 Clicks: 27 On May 4, Hangyang Co., Ltd., the fifth-largest industrial gas company in China, announced that its indirect controlling shareholder, Hangzhou Capital, had recently signed a Share Sale and Purchase Agreement with other investors as well as Yingde** and Gas Power. Under this agreement, Hangzhou Capital intends to jointly invest with other investors to establish a buyer SPV in order to acquire 100% of the shares in Zhejiang Yingde Holding Group Co., Ltd. (referred to as the “Target Company”), which are held by Yingde**. Hangyang Co., Ltd. stated that following the completion of this transaction, Hangzhou Capital will hold 30% of the shares in the buyer’s SPV, making it the largest shareholder of the buyer’s SPV (but not the controlling shareholder). As of the date of disclosure of this announcement, the buyer’s SPV has not yet been established. The seller still needs to carry out internal restructuring of the target company; once this restructuring is completed, the target company will primarily engage in the on-site production of gas, retail gas supply, as well as the production and sale of specialty gases, air separation units, and clean energy products. Hangzhou Capital commits to pushing the listed company to sign an asset restructuring agreement with the buyer’s SPV within 36 months after the completion of this transaction, and to have the listed company disclose a plan for the transaction. It is reported that the value of China’s industrial gas market is currently around 200 billion yuan. From 2017 to 2021, the compound growth rate of the domestic gas market was approximately 11%. From 2011 to 2021, this compound growth rate was about 1.2 times that of the GDP, and 1.7 times that of industrial added value. In the overseas markets, the compound growth rate of the industrial gas industry was about 1.5 times that of the GDP.