MingZhu Logistics To Acquire CheYi Network For Aggregate $29.4M
MingZhu Logistics Holdings Ltd (NASDAQ: YGMZ) has entered a Share Purchase Agreement to acquire 100% of the equity interest of Cheyi (BVI) Limited for a total consideration of ~$29.47 million.
Cheyi operates its business through its subsidiary Zhejiang CheYi Network Technology Co., Ltd., an integrated online car-hailing and driver management services company.
MingZhu expects the acquisition to offer customers additional platform enhancements and directly fits its acquisition strategy, which includes adding financially accretive, best-of-breed companies and products.
The consideration consisted of ~3.19 million fully paid MingZhu Logistics ordinary shares priced at $4 per share (total ~$12.76 million) and payment of $2 million at closing.
The consideration also consisted of Year-2021 earnout payment of ~$8.83 million and Year-2022 earnout payment of ~$5.88 million if the Cheyi BVI's audited net income for its fiscal year 2021 and 2022 is no less than $3 million respectively.
MingZhu Logistics held cash and equivalents of .2 million as of June 30, 2021.
The company expects to close the transaction to close by December 31, 2021.
Price Action: YGMZ shares are trading higher by 26.7% at $2.23 during the pre-market session on Wednesday.
See more from Benzinga
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
