Hubei Xingfa Chemicals Group to assign its 100% stakes in Inner Mongolia Tenglong Group to Hubei Taisheng
Date:12-18-2018
Chinese agrochemical company
Hubei Xingfa Chemicals Group has announced an assignment of its 100% stakes in Inner Mongolia Tenglong Group to Hubei Taisheng Chemical, a wholly-owned subsidiary of Hubei Xingfa Chemicals Group. The assignment is priced at Yuan239.7482 million, in a bid to consolidate its glyphosate resources to enhance the operational efficiency of its glyphosate business. Following completion of the assignment, Hubei Taisheng is prepared to increase capital by Yuan333.34 million, after which the registered capital of Inner Mongolia Tenglong will reach Yuan400 million.
The transaction is expected to be a further optimization of the company's glyphosate business operation, which will effectively enhance the synergistic effect between Hubei Taisheng and Inner Mongolia Tenglong. It is expected that the cost control, quality assurance and product profitability of Inner Mongolia Tenglong will be further improved, while its glyphosate business operation efficiency will be enhanced. Additionally, the capital increase to be made after the transaction will assist Inner Mongolia Tenglong to implement its quality and efficiency upgrading initiatives, as well as environmental and safety measures, thus further strengthening the quality assurance and sustainable development capacity of Inner Mongolia Tenglong.
In February 2018, Hubei Xingfa Chemicals Group announced the acquisition of 100% stakes in Inner Mongolia Tenglong Biological Fine Chemicals. Inner Mongolia Tenglong has an annual glyphosate production capacity of 50,000 tons, which ranks among the top 5 in China. After being acquired by Xingfa Chemicals Group, its glyphosate production capacity has increased to an annual 180,000 tons.
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