Nanjing Redsun Group Sells 51% Equity in Nanjing Biochemical
Year:2009 ISSUE:8
COLUMN:M & A, BUSINESS & TRADE
Click:198    DateTime:Mar.17,2009
Nanjing Redsun Group Sells 51% Equity in Nanjing Biochemical     

Nanjing Redsun Group Co., Ltd. is selling the 51% stake held in Nanjing Biochemical Co., Ltd. for a consideration of roughly RMB369 million via Nanjing Assets and Equity Exchange.  
   An insider says this is the first step of restructuring Nanjing Redsun Co., Ltd. (SZ: 000525) as it posted the regrouping plan in December 2008. (CCR2008 No. 36)
   Nanjing Biochemical's equity split now is 51: 49 between Nanjing Redsun Group Co., Ltd. and Nanjing No. 1 Pesticide Group Co., Ltd. And the latter intends to acquire the 51% stake held by Nanjing Redsun Group, thereby holding a 100% equity in Nanjing Biochemical.
   Upon completion of the transaction, Nanjing Redsun will give its shares to Nanjing No. 1 Pesticide Group Co., Ltd. for exchanging 100% equity in Nanjing Biochemical and 100% equity in Anhui Biochemical Co., Ltd. as well as pesticide assets, in order to expand its product portfolio and enhance profit-making ability.