Hong Kong-listed Capital Industrial Financial Services Group is considering acquiring a 24.84% stake in a Chinese robotics-focused financial leasing company as it seeks to expand into robotics and intelligent manufacturing, according to a disclosure filed with the Hong Kong Stock Exchange (HKEX).
The company has received a letter of intent from Shougang Industrial Investment (Beijing) Technology Innovation Co., which currently owns about 24.84% of Beijing Robot Financial Leasing Co., the Sept. 4 HKEX disclosure showed.
The target company provides financing and leasing services for robotics and intelligent manufacturing equipment, alongside supply-chain coordination and other industry-finance services.
Beijing Robot Financial Leasing procures robotic assets from equipment manufacturers and provides them to end-users through leasing arrangements, potentially reducing the upfront capital needed to deploy robotics technology.
Its activities span healthcare, education, elderly care, industrial manufacturing and commercial services.
Existing applications include surgical robots in hospitals, robotics programmes in schools and equipment used in landscape and water-related services, performances and events, according to the filing.
Capital Industrial Financial said the potential acquisition forms part of its push into robotics and intelligent manufacturing and would extend its existing supply-chain management capabilities into technology equipment and asset operations.
Financial terms have not been agreed. The acquisition price and payment method would be negotiated after due diligence and remain subject to a definitive agreement.
Capital Industrial Financial expects to fund the potential transaction through internal resources, capital-market financing or a combination of the two. It does not intend to use proceeds from a rights issue announced in July for the acquisition.
Shougang Industrial Investment is an associate of Capital Industrial Financial’s controlling shareholder, meaning the acquisition would constitute a connected transaction under Hong Kong listing rules if it proceeds.
The stake is also subject to transfer restrictions, and the transaction would require regulatory compliance and approval from Shougang Industrial Investment’s parent group.