Hengxin Technology to nab 24% Mianyang Siemax stake worth RMB72m

It’s taking advantage of demand for fibre optic connectors.

Hengxin Technology’s subsidiary Hengxin Jiangsu has inked a sale and purchase agreement (SPA) with vendors to purchase a 24% stake in Mianyang Siemax worth RMB72m.

According to the Hengxin Technology’s media release, the 24% stake is the sum of shares held by Huang Hongwei (8.22%), Wang Youcai (7.74%), Chen Jiaxin (3.23%), Song Ze (2.64%), Wang Fang (1.44%) and Chen Yiguang (0.72%).

Hengxin Jiangsu will pay for the 24% stake in the Mianyang Siemax, which manufactures fibre optic ceramic ferrules, in three installments.

The company stated that it is pursuing the deal to take advantage of the burgeoning demand for fibre optic connectors, particularly in China.

“As fibre optic ceramic ferrules form a main component of fibre optic connectors, the Company views it as an opportune time for such an investment as the Company’s vast marketing networks in the same industry can serve as a bridge for Mianyang Siemax’s business strategy,” stated the release.