Jun. 7, 2012 (China Knowledge) - Yunnan Yuntianhua Co Ltd<600096
>, a fertilizer producer in China, yesterday announced that it plans to acquire RMB 16.07 billion of assets to expand its business into the whole phosphate industry.
The company said in a statement that it will issue new shares to eight companies, including its parent company Yuntianhua Group, to buy the 100% stake in Yunnan
Yuntianhua International Chemical Co, the 100% stake in Yunnan
Phosphate Chemical Group Co, a 40% stake in Yunnan
Tianan Chemical Co, the 100% stake in Yunnan
Three Circles-Sinochem Fertilizer Co, an 86.8% stake in Yuntianhua United Commerce Co, the 100% stake in Yunnan
Tianchuang Science & Technology Co and the another Yunnan-based
The company will buy a 29.67% stake in Tianda Chemical Co from China Cinda Asset Management Co through a share placement plus RMB 40 million in cash.
In addition, the company plans to issue 416 million shares to not more than ten investors at a price of at least RMB 12.87 apiece to take over a 70.33% stake in Tianda Chemical from its parent company and replenish its working capital.
The asset acquisition, which will enable Yuntianhua Group to achieve a group listing, will help Yunnan
Yuntianhua Co expand into the entire phosphate industry from phosphate mining, phosphate fertilizer to phosphate chemical.