Sanyou Chemical unit to acquire 31% stake in Sanyou New Materials for RMB 52.83 million
Sanyou Chemical's controlled subsidiary Tangshan Sanyou Salt Chemical will acquire a 31% equity stake in Tangshan Sanyou New Materials for RMB 52.83 million, increasing its holding from 20% to 51% and making the target a controlled subsidiary. The seller is Hebei Changlu Daqinghe Salt Chemical Group, a wholly-owned unit of Sanyou Chemical's controlling shareholder. The deal aims to extend the industrial chain, reduce related-party transactions, and integrate the bromine-based business.
Sanyou Chemical's controlled subsidiary Tangshan Sanyou Salt Chemical Co. , Ltd. plans to purchase 18.786 million shares of Tangshan Sanyou New Materials Co. at a valuation-based price of RMB 52.8281 million, representing a 31% equity stake. After the transaction, Sanyou Salt Chemical's stake in Sanyou New Materials will increase from 20% to 51%, making Sanyou New Materials a controlled subsidiary of Sanyou Salt Chemical.
The counterparty is Hebei Changlu Daqinghe Salt Chemical Group Co. , a wholly-owned subsidiary of Sanyou Chemical's controlling shareholder. Sanyou Chemical stated that the transaction aims to extend the industrial chain, further reduce related-party transactions, and integrate the currently highly profitable bromine-based business.
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The event has a measured impact on 1 industry. The strongest current signal is positive for Basic Chemicals, with intensity 30/100 and 80% confidence over a short term horizon.
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