AgroPages-Noposion transfers 35.0% shares of Changlong Agrochemicals for USD24.7 million-Agricultural news

Related News

Jiangxi Heyi plans to acquire 49% shake of Changlong Chemical

By Think Real - On 29 Aug., 2016, Shenzhen Noposion Agrochemicals Co., Ltd. (Noposion) published a notice saying that it plans to transfer the 35.0% shares of that it holds in Jiangsu Changlong Agrochemicals Co., Ltd. (Changlong Agrochemicals) to Shenzhen Rongxin South Investment Co., Ltd. (Rongxin South, one of the shareholders of Noposion), with the price of USD24.7 million. By then, Noposion will have finished the ripping off the 35.0% shares of both Changlong Agrochemicals and Jiangsu Changlong Chemicals Co., Ltd.

Estimated by the evaluated transaction price, Noposion will gain an investment turnover worth of USD4.6 million.

By 30 June, 2016, the total assets, debts and asset-liability ratio of Changlong Agrochemicals were USD190.6 million, USD139.2 million and 73.0% respectively. During the first six months of 2016, the company’s revenue and net profit reached USD99.6 million and USD2.7 million respectively.

Noposion said that the transfer will favor its optimization of industrial structure and concentrated development of its main businesses; benefit the speeding up of its industrial transformation and strengthening of its core and competitive comprehensive agricultural services, which conform to the development strategy and target of its Internet ecological system for the three dimensional issues: farmers, rural areas and agriculture.

Table 2: Noposion’s plans for transferring stakes held in Changlong Chemical and Changlong Agrochemicals

Transferee	Shareholder	Share proportion
Transferee	Shareholder	Before transfer	Transfer plan on 20 June, 2016	Transfer plan on 29 Aug. 2016
Changlong Chemical	Noposion	35.0%	0%	0%
	Shenzhen Rongxin South Investment Co., Ltd.	43.6%	78.6%	78.6%
	Tibet Linzhi Changlong Investment Co., Ltd.	21.4%	21.4%	21.4%
Changlong Agrochemicals	Changlong Chemical	65.0%	0%	0%
	Noposion	35.0%	35.0%	0%
	Shenzhen Rongxin South Investment Co., Ltd.	0%	65.0%	100.0%