TD Holdings (NASDAQ:GLG) stock is rising higher on Friday after announcing plans to acquire two companies.
According to a press release, TD Holdings has signed a non-binding Letter of Intent to acquire Guangdong Jinbochuang Special Purpose Vehicle Co. and Hunan Jinmeike New Material Co. This will have it acquiring 100% stakes in both companies by offering a yet undetermined price for their shares.
TD Holdings notes that these acquisition plans will have it entering the unmanned logistics and new energy vehicle industry. While an exact date for the acquisitions hasn’t been pinned down yet, the deals are expected to close within 180 days of the signing of the Letter of Intent.
It’s worth pointing out that there’s no guarantee that TD Holdings will move forward with the acquisitions. The company still has to complete its due diligence research, as well as negotiations with the acquisition targets.
Renmei Ouyangm, CEO of TD Holdings, had the following to say about the news sending GLG stock higher today.
“The planned acquisition of Jinbochuang and Jinmeike is not only in line with our growth strategy of improving our industrial chain, but also corresponds to the national strategy of ‘Made in China 2025’ and the industry trend of manufacturing lightweight vehicles. We expect to incorporate lightweight new materials, applications and lightweight trucks into our global industry chain.”
GLG stock is seeing massive trading today thanks to today’s news. As a result, more than 131 million shares of the stock have traded as of this wrtiing. That’s an impressive spike compared to its daily average trading volume of around 704,000 shares.
GLG stock was up 39.1% as of Friday morning.
There’s plenty of other stock market news worth checking out below.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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