As per an announcement released on January 9th evening, Absen signed a "Share Purchase Agreement" with, Zhong Zaibo, Zhang Wenxia and VISS Lighting on January 9th, 2015. The company intends to use internal funds of RMB24 million to acquire a 60% stake in Shenzhen VISS Lighting Co., Ltd. (referred to as “VISS Lighting”), which was held by Zhong Zaibo and Zhang Wenxia. Absen purchased a 50% stake from Zhong Zaibo, and 10% stake from Zhang Wenxia. After the acquisition is completed, the company will hold 60% of VISS Lighting’s equity, and Zhong Zaibo will hold the balance 40% share in VISS Lighting, while Zhang Wenxia will no longer hold any shares in VISS Lighting. By virtue of shareholding, VISS Lighting will become Absen’s subsidiary.
It is reported that VISS Lighting has strong advantages and competitiveness in stage leasing and creative display business. By acquiring its shares, Absen intends to improve product development capabilities and core competencies in these areas, so as to improve the company's product line, and better meet customer’s needs, thereby enhancing the company's overall competitiveness.
As per Absen, they have industry-leading sales channels advantages in the field of full-color LED displays, while VISS Lighting has strong R & D and design capabilities in stage leasing and creative displays. Therefore through this acquisition, the company can give full play to VISS Lighting’s products and R & D strengths, while at the same time utilize Absen’s own sales channel advantages, to rapidly increase VISS Lighting’s sales volumes, and help enhance the company's market share and profitability. VISS Lighting is expected to touch an RMB40 million net profit target in 2015 and 2016. This will effectively enhance the company's return on investment and shareholder value, which is in line with the company's strategic development goals.
About VISS LIGHTING
Shenzhen VISS Lighting Co., Ltd., was founded in 2009, and mainly engages in developing, producing, and selling products and services for stage rentals and creative LED displays. The company's products are light, thin, transparent, and quick to disassemble, which are their key highlights, and have extremely strong industry-leading original design concepts. With its unique and creative products, VISS Lighting stands out as a leader in the field of stage rentals and creative displays, and its products are highly favored by global professional users. VISS Lighting’s products have been successfully used in China Central Television, Beijing 2008 Olympic Games, the 2010 Shanghai World Expo USA Pavilion and the Russian Pavilion, as well as for many other major projects. The company’s products are mainly exported and sold in dozens of countries and regions all over the world.