Nanjing Redsun Unveils Restructuring Plan      

Nanjing Redsun Co., Ltd (SZ: 000525) plans to issue up to 300 million shares at RMB9.28 apiece to Nanjing No.1 Pesticide Group Co., Ltd. to acquire pesticide-related assets, Nanjing Redsun said on December 15th as it unveiled a restructuring plan after shares were suspended from trading for more than a month.
   The assets to be acquired include 100% of Nanjing Biochemical Co., Ltd., 100% of Anhui Biochemical Co., Ltd., 100% of Redsun International Trading Company Ltd. and the pesticide operating assets of Nanjing No.1 Pesticide Group, with combined value estimated at RMB2.69 billion.
   Nanjing No.1 Pesticide would replace Nanjing Redsun Group as the controlling shareholder of Nanjing Redsun after the completion of the transaction, which is subject to authority approval.
   Nanjing Biochemical mainly engages in the production of pyridine base and its downstream product of paraquat, with an annual production capacity of 12 000 tons for pyridine base, and 9 000 tons for paraquat (counting on 100% active ingredient). The company reported a net profit of RMB24 million in the January-October period.
   Anhui Biochemical mainly produces pyridine base and N-(phosphonomethyl) iminodiacetic acid, or PMIDA, with an annual capacity of 25 000 tons and 20 000 tons respectively. It recorded net profit of RMB39 million in the first 10 months of 2008.
   Redsun International's 10-month 2008 net profit stood at RMB542 400.
   Nanjing No.1 Pesticide's mainly produces 3,5,6-trichloropyridin-2-ol sodium and diquat, with an annual capacity of 10 000 tons and 600 tons respectively. The pesticide operating assets which Nanjing No.1 Pesticide proposed to inject into Nanjing Biochemical had a net income of RMB31.1 million in the first 10 months of 2008.
   The deal will help integrate the brands, technical know-how, sales channels and human resources of Nanjing No.1 Pesticide, Nanjing Redsun and Nanjing Redsun Group, giving Nanjing Redsun full industry chains among pyrethroid, pyridine base and hydrogen cyanide. An integrated chain of intermediate-pesticide technic-pesticide formulation-sales channel will be formed, helping boost overall advantages and competitiveness for the company, which is aimed at becoming one of the strong players among global pesticide companies.
   Nanjing Redsun's site is in Gaochun county, Jiangsu province.