SHANGHAI, Jun. 27 (SMM) – Shenzhen GEM High-Tech Co. signed a framework agreement June 26 to acquire 60% stake in Yangzhou Ningda Noble Metal Co. at tentative price of 312 million yuan ($ 50.61 million).
Ningda Noble Metal, mainly devoted to e-waste dissembling, and recycling and processing of precious metals, will become a subsidiary of Shenzhen GEM after the acquisition is completed, according to a statement filed to Shenzhen Stock Exchange.
Shenzhen GEM made the acquisition to extend its e-waste dismantling operations to the core region of Yangtze Delta and expand its recycling business to other metals, such as germanium.
Industry insiders say the conclusion of this transaction means the number of Shenzhen GEM’s subsidiaries entitled to government subsidy for e-waste recycling will rise to 5, which is believed to help it gain larger market share.
As China’s largest waste nickel and cobalt processing enterprise, Shenzhen GEM sold 3,056 tonnes of cobalt and nickel powder in 2013, and registered a 7.04% year-on-year rise in net profit.