Important Notice
- The China Securities Regulatory Commission has approved Midea Group Co., Ltd. ("Midea Group") to issue shares to absorb and merge with Guangdong Midea Electric Co., Ltd. ("Midea Electric" or "the Company").
- To fully protect the legitimate interests of dissenting shareholders of Midea Electric, Midea Holdings Co., Ltd. will provide cash options to dissenting shareholders. The record date for cash options is August 14, 2013. After the cash options are distributed, the declaration process will begin, as detailed in the cash option distribution announcement published on August 8, 2013. As of August 7, 2013, Midea Electric's stock closing price was 13.85 CNY/share, representing a premium of 38.64% over the cash option exercise price. Investors exercising the cash option may incur losses; please be aware of investment risks.
- Midea Electric's stock (stock code: 000527) will be suspended from trading starting August 15, 2013. Following this, Midea Electric's stock will enter the cash option distribution, exercise declaration, and settlement phase, and will no longer be traded until it is converted into Midea Group shares listed on the Shenzhen Stock Exchange. August 14, 2013, will be the last trading day for Midea Electric's stock; investors are advised to take note.
- Midea Group, as the absorbing party and share exchange implementer, will convert Midea Electric shares held by investors into Midea Group shares based on the exchange ratio determined by the merger plan. "Securities conversion" refers to the conversion of Midea Electric shares held by investors into the corresponding number of Midea Group shares according to the exchange ratio. After the securities conversion is completed, Midea Group will handle the initial listing registration with the Shenzhen branch of China Securities Depository and Clearing Corporation Limited.
- After the cash option implementation is completed, Midea Electric will enter the delisting process, and shares held by original Midea Electric shareholders will be converted into Midea Group shares according to the exchange ratio. On the record date for the share exchange (specific date to be announced), if investors have submitted Midea Electric shares as collateral for margin trading, the converted Midea Electric shares will be exchanged for Midea Group shares.
- Investors engaged in repurchase agreements with Midea Electric should complete early repurchase procedures before the close of trading on the record date for the share exchange. If there are still outstanding repurchase agreements after the close of trading on the record date, the relevant securities companies must promptly contact the Shenzhen branch of China Securities Depository and Clearing Corporation Limited to handle related matters. Any losses incurred due to failure to contact in a timely manner will be borne by the parties involved in the repurchase agreement; China Securities Depository and Clearing Corporation Limited will not be liable.
- Shares of Midea Electric that have been pledged, subject to third-party rights, or judicially frozen will be converted into shares issued by Midea Group, and the original conditions of pledge, third-party rights, or judicial freezes will continue to apply to the corresponding Midea Group shares.
- After Midea Electric's delisting, Midea Group will be responsible for distributing any cash divid