Shenghe Resources to Transfer 51% Equity in Four Subsidiaries to China Rare Earth Group for RMB 1.6575-1.8105 Billion
【SMM Rare Earth Flash】 On October 19, Shenghe Resources announced plans to transfer 51% equity in four subsidiaries — Leshan Shenghe (after divesting non-separation businesses), Quannan Xinziyuan Rare Earth, Jiangyin Jiahua New Materials, and Zibo Jiahua New Materials — to China Rare Earth Group Industrial Development Co., Ltd. The appraised value of the target companies totals RMB 3.25-3.55 billion, corresponding to a transaction consideration of approximately RMB 1.6575-1.8105 billion. Upon completion, the four companies will be deconsolidated, with accounting switched from the cost method to the equity method. The cooperation is limited to rare earth smelting and separation operations.