China Energy Storage Technology Development Limited: Delay in Despatch of Scheme Document for Privatisation Proposal

Key Highlights

• Privatisation Proposal: China Energy Storage Technology Development Limited (the “Company”) is the subject of a proposed privatisation by Fame Castle Enterprises Limited (the “Offeror”) via a scheme of arrangement under Section 86 of the Companies Act of the Cayman Islands.
• Withdrawal of Listing: The proposal includes the intended withdrawal of the Company’s shares from listing on The Stock Exchange of Hong Kong Limited.
• Delay in Scheme Document Despatch: The Scheme Document, originally expected to be dispatched on or before 20 April 2026, will now be delayed to a date on or before 30 June 2026, subject to regulatory and court processes.
• Regulatory Approval: The Company and Offeror have secured the Executive’s consent under Rule 8.2 of the Takeovers Code for this extension.

Details of the Announcement

Fame Castle Enterprises Limited and China Energy Storage Technology Development Limited jointly announced a delay in the dispatch of the Scheme Document relating to a proposed privatisation and subsequent delisting of the Company’s shares. The privatisation will be executed through a scheme of arrangement under Section 86 of the Companies Act of the Cayman Islands, subject to the approval of the Grand Court and other regulatory requirements.

Reasons for the Delay

• Document Finalisation: Additional time is required to finalise the contents of the Scheme Document, which will contain crucial information, including the details of the privatisation proposal, an explanatory statement, expected timetable, recommendations from the Independent Board Committee, the Independent Financial Adviser’s letter, and notices for the Court Meeting and EGM.
• Court Directions: Directions from the Grand Court regarding the convening of the Court Meeting are still pending.

New Timetable

An application was made to the Executive under Rule 8.2 of the Takeovers Code to extend the deadline for the despatch of the Scheme Document to any date up to and including 30 June 2026. The Executive has granted this extension. The detailed expected timetable for the privatisation proposal and the Option Proposal will be provided in the Scheme Document and in a future joint announcement upon its despatch.

Key Points for Investors and Shareholders

• Conditionality: The implementation of the privatisation and withdrawal of listing is subject to the fulfilment or waiver of several conditions. There is no guarantee that the Proposal, the Option Proposal, or the Scheme will become effective.
• Potential Share Price Impact: The delay and uncertainty regarding the finalisation and approval of the privatisation proposal may influence the Company’s share price and trading activity. Investors should be aware of the risks and price sensitivity associated with this development.
• Further Announcements: The Company and the Offeror will issue further announcements to keep shareholders informed of progress and any material developments.
• Exercise Caution: Shareholders, Share Option Holders, and potential investors are strongly advised to exercise caution when dealing in the Company’s securities as the privatisation and delisting may or may not proceed.
• Consult Professional Advisers: If there is any doubt as to the action to be taken, shareholders and investors should consult stockbrokers, licensed securities dealers, registered institutions in securities, bank managers, solicitors, or other professional advisers.

Board and Responsibility Statements

• The directors of Fame Castle Enterprises Limited and China Energy Storage Technology Development Limited have jointly and severally accepted full responsibility for the accuracy of the information in their respective statements, confirming that to the best of their knowledge, all material facts have been disclosed.
• As of the date of this announcement, the Offeror’s directors are Mr. Lee Kai Bon, Mr. Ng Kim Yuen, Mr. Wong Sik Hung, and Mr. Tam Kam Fong. The Company’s Board comprises Mr. Lin Dailian (Co-Chairman), Mr. Wang Wei (Co-Chairman), Mr. Liu Zhiwei, Ms. Wu Jingjing, Ms. Bian Sulan (executive Directors), and Mr. Li Huiwu, Mr. Wu Chi King, and Ms. Zhang Xiulin (independent non-executive directors).

Conclusion

The delay in the despatch of the Scheme Document adds uncertainty to the timeline of the proposed privatisation and delisting of China Energy Storage Technology Development Limited. Shareholders should closely monitor subsequent announcements, as the outcome of this process could have a direct and material impact on the valuation and liquidity of their shares.

Disclaimer: The above article is for informational purposes only and does not constitute investment advice. The implementation of the privatisation and withdrawal of listing is subject to various conditions and regulatory approvals, which may or may not be fulfilled or waived. Shareholders and potential investors should exercise caution and consult their professional advisers as necessary. The Company and Offeror will provide further updates as appropriate. Trading in the Company’s shares involves risk, especially in the context of corporate actions such as a proposed privatisation and delisting.

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