Sinochem International to acquire more stakes in Yangnong Chemical

Sinochem International Corporation announced on February 21 that it intends to add not more than CNY 1.63 billion capital to acquire 61.66 million shares of Jiangsu Yangnong Chemical Group, in a bid to increase its holdings from 5% to 40.53% in the target company. After finishing the capital injection, Sinochem International will become the second-largest shareholder of Yangnong Chemical, next to the largest shareholder Jiangsu Jinmao Chemical & Pharmaceutical Group holding 40.59% of total in the target company.

Sinochem International said Jiangsu Yangnong Chemical Group owns powerful industrial base and industrial experience, which has high-efficient synergy value with its fine chemical engineering and farm chemical businesses. The transaction will help the company enhance R&D and industrial transforming capacity, enrich production lines, improve industrial chain and increase investment incomes.

Jiangsu Yangnong Chemical Group's book assets totaled CNY 7.92 billion and net assets came to CNY 2.9 billion at September end 2011. It made CNY 4.57 billion operating revenues and CNY 286 million net profits during the period of January-September.