Jiangxi Copper intends to hold a stake of 29.99 per cent in Hengbang shares of nearly 3 billion yuan

Published: Mar 4, 2019 18:59
Acquisition of Hengbang shares

SMM3, April 4: Jiangxi Copper (600362) announced on the evening of March 4. The company intends to acquire (002237) 273 million RMB common shares held by Hengbang Group, Wang Xinen, Wang Jiahao, Zhang Jixue and Gao Zhenglin by way of agreement transfer, accounting for about 29.99% of the total shares of the target company. The transfer price is 2.976 billion yuan. After the completion of the transaction, Jiangxi Copper will hold 29.99% of Hengbang shares and become the controlling shareholder of Hengbang shares.

Risk hint: this transaction shall be subject to the approval of the competent department of state assets and shall take effect after the centralized examination and approval of the operators of the State Administration of Market Supervision and Administration. After the entry into force of the agreement, the relevant procedures shall be performed in accordance with the relevant provisions of the transfer agreement of the Shenzhen Stock Exchange, And after meeting the delivery conditions stipulated in the share transfer agreement, we will register the transfer of shares in the Shenzhen Branch of China Securities Registration and settlement Co., Ltd., and there is a certain risk of uncertainty in the above matters. There is a risk that the parties to the transaction will fail to perform their obligations in accordance with the contract. If the domestic macroeconomic trend and the industrial policy of non-ferrous metal smelting and Calendering industry have undergone significant adverse changes, there is a risk of adversely affecting the future business performance of the target company after this transaction.

The main business development of Hengbang Group in the past three years: leading products and annual production capacity: 50 tons of gold, 1200 tons of silver, 250000 tons of electrolytic copper, 1.4 million tons of sulfuric acid, 400000 tons of ammonium phosphate and various compound fertilizers, 60, 000 tons of lubricating oil products, Cutting fluid 10,000 tons, mineral processing reagent 30, 000 tons, all kinds of corrosion-resistant pumps 5000 sets, liquor 2000 tons, thermoelectric power generation capacity 12000 kilowatts, heating capacity 340 tons per hour. The supporting capacity of gold mining and selection is 5500 tons per day, and the mining capacity and gold output are in the forefront of the gold industry in the country.

The main financial data for the most recent year of Hengbang Group are shown in the table below:

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