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Huaxin International to divest agrochemical business for 2 billion yuan
Aug. 12, 2016
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ChinaAnhui Huaxin International announced the sale of its agrochemical business and agricultural material trading business to CEFC Petro (Guangdong) Ltd. on August 8 for 1.983 billion yuan.
By the date of the announcement, 100% of the stake in Huaxing Chemical, 51% of the stake in Huajian Chemical, and 100% of the stake in Linearfull, held by Huaxin International, were transferred to CEFC Petro (Guangdong) Ltd. The 50% stake in Xingnuo Chemical held by Huaxin International has also been transferred to the subsidiary Huaxing Chemical of CEFC Petro. Huaxin International no longer holds any equity shares of Huaxing Chemical, Huajian Chemical, Linearfull and Xingnuo.
The company believes the divestiture of its agrochemical business, which is facing intense competition and reduced profitability, will help address the adverse impact it had on the company’s performance. In the meantime, the move will help recoup funds quickly, helping the company finance its shift towards energy, finance and other sectors. Thus, the company will be able to focus on the development of the energy and finance sectors to establish a “2-wing industry structure,” based on the introduction of a financial platform and the "internet +" platform, which is expected to gradually form an “energy + finance” strategic deployment.
Source: AgroNews
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