AgroPages-Wynca planning acquisition of 100% stake in Transfar Whyyon Chemical-Agricultural news

On 17th April, Wynca announced that it is planning to acquire a 100% stake in Transfer Whyyon Chemical Ltd., through the issuance of shares and cash payment.

The controlling shareholder of Wynca is the Transfer Group, who holds Yuan102 million shares as of 30th September 30, 2019, accounting for 14.42% of total equity shares. The controlling shareholder of Transfar Whyyon Chemical is the Transfer Chemicals Group, which holds 100% of equity shares and is also a wholly-owned subsidiary of the listed controlling shareholder, the Transfer Group, meaning that the acquisition constitutes an associated transaction.

The object of the acquisition, Transfer Whyyon Chemical, was founded in 1998 and is the fine chemical business unit of Transfer Chemicals Group. Since its founding, the company has been dedicated to producing paper-making chemicals and plastic chemicals. Through active business development in both domestic and international markets, the company has established a complete marketing channel and service network covering the whole country, to be extended to Europe, the United States, Africa and Southeast Asia.

Wynca’s business scope mainly covers crop protection and organosilicon materials, with its main products being widely used in industries related to agriculture, biotechnology, aerospace, healthcare, building materials, electric, electronics and new energy.

On 22nd January, Wynca issued an earnings forecast for 2019, predicting an annual net profit of Yuan400 million to Yuan450 million, a 63.52% to 67.57% decrease from the previous year. In this regard, Wynca explained that its leading product, organosilicon, suffered a sharp price fall this year compared to last year. Additionally, Wynca’s wholly-owned subsidiary, Zhenjiang Jiangnan Chemical, has held up its annual 100,000-ton organosilicone monomer production facility to support its annual 300,000-ton organosilicone chloride resource utilization project, which has affected production to some degree.