Jun. 21, 2016
Noposion announced yesterday it was signing a share transfer agreement with Shenzhen Rongxin Southern Investment Co., Ltd.
Under the agreement, Noposion will transfer its 35% stake in Jiangsu Changlong Chemicals Co., Ltd. to Rongxin Southern for 236.536 million yuan . Meanwhile, Rongxin Southern will also purchase a 65% stake in Jiangsu’s subsidiary, Changlong Agrochemical Company.
Some weeks ago, Jiangsu was sued by the government because of the pollution it had created on property belonging to a school. The lawsuit dealt a blow to Noposion's plans to sell the company to Nantong Jiangshan Chemical.
Based on this failed transaction and due to the rough market environment, Noposion also decided to weaken its original stake incentives and to abort its new incentive plan altogether.
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