The Japanese electronic equipment manufacturer "Da Nikko Engineering" recently announced that it will acquire the electronic equipment manufacturer "Wuxi Rongzhi Electronics Co., Ltd." in Wuxi City, Jiangsu Province. The acquisition amount was 580.32 million yen. In order to expand its business in China, Daylight intends to use the technology and sales channels of local companies to exert a multiplicative effect.
Daylight Engineering will acquire 58% of the shares from Wuxi Rongzhi's wholly-owned parent company, Lihe Investment Group Co., Ltd., an investment company. The acquisition is scheduled to close on November 11.
During the acquisition, Daylight Engineering will implement a third-party targeted capital increase with Lihe as the subscriber to raise funds equal to the acquisition amount. As a result, it is expected that Lihe will become the largest shareholder holding 19.35% of the shares of Da Sunlight Engineering.
It is reported that Wuxi Rongzhi's main products are vehicle-mounted LCD panels. In recent years, it has also set foot in the virtual space "Metaverse" related business. The company's fiscal 2021 (ending December 2021) sales amounted to approximately 6.8 billion yen. Consolidated sales for the 2021 fiscal year (ended December 2021) of the Daikichi Project were 29.8 billion yen.
