On 6 May 2025, CALB Group Co., Ltd. (“CALB” or “the Company”, stock code: 3931.HK) announced that it intends to acquire 11% of the shares of A-share listed company Jiangsu Olive Sensors High-tech Corporation Limited (“Jiangsu Olive Sensors”, stock code: 300507.SZ) through the Share Transfer Agreement. Since the Jiangsu Olive Sensors’ original actual controller gives up majority of the voting rights, CALB will become the controlling shareholder and actual controller of Jiangsu Olive Sensors. The re-elected board of directors of Jiangsu Olive Sensors will consist of five directors, all of whom shall be nominated by CALB. In addition, Jiangsu Olive Sensors intends to private place its 15% shares to CALB, after these shares issuing, CALB’s shareholding and voting rights will increase to 22.61%.This transaction highlights expectations of the original actual controller of Jiangsu Olive Sensors for the strategic entry of CALB. Moreover, through the deep empowerment of CALB, Jiangsu Olive Sensors will be deeply integrated into the new energy industry chain, anchored in a broader market and sustained performance growth, and achieve a dual enhancement of performance and valuation in the wave of new energy development and revolution. Leveraging its global market presence and chain-leading position in the new energy sector, CALB will provide Jiangsu Olive Sensors with comprehensive, multi-scenario empowerment, further promoting Jiangsu Olive Sensors' future development across the upstream and downstream industrial chain.
This transaction is one of the limited cases that H-share listed company acquires A-share listed company since the introduction of the “Six Articles on M&A”. It will become another benchmark case for M&A and restructuring to enliven the capital market and promote industrial upgrading. In April 2024, State Council of China issued “Nine New Guidelines” for capital market, which clearly indicated that it would intensify the reform of M&A and take measures to activate the market of M&A and restructuring. In September 2024, China Securities Regulatory Commission issued the New Measures Aimed at Guiding Mergers and Acquisitions among Listed Companies, which further pointed out that it supports listed companies to transform and upgrade themselves in the new qualitative productivity and encourages listed companies to strengthen industrial integration.
In the background of M&A and restructuring wave continues to promote, CALB’s acquisition of holding Jiangsu Olive Sensors is a positive response to the national strategy but also plays a strategic practice of the “chain leader” role leading the new energy industry chain. This transaction will help to achieve the strong combination of the two companies and together to promote the high-quality development of the new energy industry through the two companies’ synergistic empowerment in many areas. Industry insiders pointed out that industrial upgrading and efficiency improvement due to M&A and integration is expected to result in a valuation premium, and industry chain leaders will have more opportunities for valuation reshaping.
In fact, CALB and the target company Jiangsu Olive Sensors are both in the automotive industry chain and are the leading enterprises in their respective segments. CALB is the first EV battery company listed on the Hong Kong Stock Exchange.
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