AgroPages-Sanonda officially released the acquisition draft of ADAMA for USD2.67 billion-Agricultural news

By Think Real - On 10th January, 2017, Hubei Sanonda Co., Ltd. (Sanonda) issued a draft and said that it had issued shares to China National Agrochemical Corporation (CNAC) officially, in exchange for its 100% shares of ADAMA Agricultural Solutions Ltd. (ADAMA). The ADAMA’s 100% shares will be transferred to Sanonda or its subsidiary. Upon completion of the transaction, ADAMA will also become a subsidiary of Sanonda. Based on the evaluation of 100% equity in ADAMA and the results of negotiation, the 100% equity in ADAMA was valued at USD2.67 billion (RMB18,471,006,998.16).

Prior to the Sanonda’s acquisition of ADAMA 100% equity, Celsius, a 100% indirect holding subsidiary of ADAMA, held 62,950,659 B-shares in Sanonda, with a 10.60% stake. In order to avoid cross-shareholding, after the settlement of the trading assets, Sanonda plans to repurchase the holdings of all Sanonda B-shares in Celsius and cancel them.

At the same time, the company intends to raise matching fund from Wuhu Xinyun Hanshi Investment Management Partnership (limited partnership) (Xinyun Hanshi) by non-public offering and the total amount of fund is not expected to exceed USD0.36 billion (RMB2.5 billion). According to the notice, the fund is about to used on the main business-related projects of the target company ADAMA, products development and registration, payment for the directional repurchase of B-shares as well as agency fees and transaction tax fees related to this transaction of reorganization. As for the gap between the fund raised actually and fund expected to raised in maximum will be filled with the company’s self-raised funds.

According to its financial data, by 30th September, 2016, the total assets of ADAMA had reached USD4.4 billion. In the first nine months of 2016, its revenue and net profit hit USD2.3 billion and USD185.6 million respectively.