Announcement of AVIC Electromechanical Systems Co., Ltd. Regarding the Distribution and Implementation of Cash Option for Share Swap Absorption Merger with AVIC Avionics Systems Co., Ltd.
The company and all members of the board of directors guarantee that the content of this announcement is true, accurate, and complete, without any false records, misleading statements, or major omissions.
Special Reminder:
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The share swap absorption merger of AVIC Avionics Systems Co., Ltd. (hereinafter referred to as "AVIC Electronics") with AVIC Electromechanical Systems Co., Ltd. (hereinafter referred to as "the Company" or "AVIC Electromechanical") and the fundraising related transactions (hereinafter referred to as "this transaction") have been approved by the Company at the third extraordinary general meeting of shareholders held on October 26, 2022, and have received the approval from the China Securities Regulatory Commission for the issuance of shares to absorb the merger and raise supporting funds (Approval No. [2022] 3241).
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To fully protect the interests of the Company's shareholders, this share swap absorption merger will provide cash options to eligible dissenting shareholders of AVIC Electromechanical. The cash option will be provided by AVIC Technology Co., Ltd. (hereinafter referred to as "AVIC Technology"). Dissenting shareholders entitled to exercise the cash option may declare their intention to exercise the cash option for all or part of their shares during the cash option declaration period as specified in this announcement. If dissenting shareholders do not declare or effectively declare their intention to exercise the cash option during the declaration period, their shares will be forcibly converted into A-shares issued by AVIC Electronics.
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The Company's stock (stock abbreviation: AVIC Electromechanical, stock code: 002013) will be continuously suspended from trading starting from the opening of the market on February 8, 2023. It will then enter the cash option distribution, declaration, and settlement phase, and will no longer be traded. After the cash option process is completed, the Company will apply to the Shenzhen Stock Exchange for delisting. The shares held by the Company's shareholders will be converted into A-shares of AVIC Electronics listed and traded on the Shanghai Stock Exchange after the share swap is implemented. February 7, 2023, will be the last trading day for the Company's stock, and investors are advised to pay attention.
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Dissenting shareholders entitled to exercise the cash option are those who voted against the proposal regarding the share swap absorption merger of AVIC Electronics with AVIC Electromechanical and its related transactions at the third extraordinary general meeting of shareholders held on October 26, 2022, and have continuously held the shares representing that dissenting right (hereinafter referred to as "Dissenting Shares") until the close of the cash option implementation date, and have successfully completed the relevant declaration procedures during the cash option declaration period. If dissenting shareholders sell their shares after the record date for voting on this transaction, the number of shares entitled to the cash option will be correspondingly reduced; if they buy shares after the record date, the number of shares entitled to the cash option will not increase. Dissenting shareholders holding the following shares registered with the Company are not entitled to claim the cash option for their shares: (1) Shares of AVIC Electromechanical that are subject to rights restrictions, such as those pledged, subject to third-party rights, or judicially frozen; (2) Shares for which the legal holder has committed in writing to waive the cash option; (3) Other shares that cannot exercise the cash option according to applicable laws. The shares that cannot claim the cash option will be converted into the shares issued by AVIC Electronics according to the swap ratio on the swap date. If this share swap absorption merger cannot be implemented, dissenting shareholders cannot exercise the cash option and shall not claim any compensation or reimbursement from either party involved in the merger.