Yuntu Holdings Unit to Form Singapore Joint Venture for Congo Potash Acquisition
Yuntu Holdings said its wholly owned subsidiary Yingcheng Chemical will form a Singapore joint venture, Zangge United Resources, with Zangge International, a wholly owned subsidiary of Zangge Mining. Yingcheng Chemical will hold 25% and Zangge International 75%. The venture plans to acquire 92% of Kanga Potash for USD 171 million, with Yingcheng Chemical's 25% share equal to about USD 42.76 million, or RMB 289 million.
Yuntu Holdings announced on September 17 that its wholly owned subsidiary Yingcheng Chemical plans to establish Zangge United Resources in Singapore as a joint venture with Zangge International, a wholly owned subsidiary of Zangge Mining. Yingcheng Chemical will hold 25% and Zangge International 75%.
The joint venture plans to acquire 92% of Kanga Potash, or KP, for USD 171 million, equivalent to about RMB 1.157 billion. Based on its 25% stake, Yingcheng Chemical's corresponding investment amount is USD 42.7616 million, or about RMB 289 million.
KP's core assets are the Kanga potash mining right and the Loango potash exploration right in the Republic of the Congo, with total potassium chloride resources of 1.989 billion tonnes. The announcement said the investment will extend the company into the upstream potash fertilizer industry and help secure raw material supply.
Why this event matters
The event has a measured impact on 2 industrys. The strongest current signal is positive for Agrochemicals & Fertilizers, with intensity 55/100 and 70% confidence over a long term horizon.
Agrochemicals & Fertilizers
- Direction
- positive
- Intensity
- 55
- Confidence
- 70%
- Horizon
- Long term
Crop Production
- Direction
- neutral
- Intensity
- 20
- Confidence
- 60%
- Horizon
- Long term
Impact figures are analytical estimates that combine direction, intensity, confidence and event importance. They are not investment advice.