Guoxin Micro recently disclosed a major asset restructuring plan, stating that the company plans to acquire the entire stake in Linxens by issuing new shares and the initial agreed consideration is CNY18 billion.

Both Guoxin Micro and Linxens are controlled by Tsinghua Unigroup.

According to the announcement, Linxens' main businesses cover design and manufacturing of micro connector for intelligent security chip, RFID inlay and antenna, and ultra-thin flexible LED strip. Linxens' major clients cover telecom, transportation, hotel, financial service, e-government, and Internet of Things sectors.

Guoxin Micro is mainly engaged in design and sales of integrated circuit chip and quartz crystal component business. Linxens and Guoxin Micro are upstream and downstream companies of the industrial chain and they can form strong synergistic effect.

On the completion of the transaction, Guoxin Micro will fully play the synergistic effect of the two parties by business integration and division of labor. Their listed company will gain a new performance growth point and their asset quality and business scale will be improved, which will help shareholders realize long-term value.