China's Tsinghua Tongfang announced that with a support rate of nearly 98%, the company's acquisition of Eren Eben, a Chinese tablet PC maker, has been approved by its board of directors.
According to Tsinghua Tongfang, during its first extraordinary general meeting in 2013, 97.67% of its shareholders voted for its acquisition of Eren Eben for CNY1.4 billion.
On January 9, 2013, Tsinghua Tongfang announced plans to acquire the entire stake in Eren Eben with cash and equity. The company's valuation of Eren Eben reached CNY1.368 billion at that time, and its acquisition price was considered too high by market analysts.
Commenting on the deal, Jiang Yufei, president for Eren Eben, said that this will become a key step for the company to gain more resources and maintain fast growth.
As a young enterprise which was established three years ago, Eren Eben currently has over 300 employees and it mainly engaged in the production and sales of tablet computers. Public files showed that from 2010 to 2012, its net profit was CNY15.838 million, CNY41.066 million, and CNY51.455 million, respectively.