DunAn to Control Jiangnan Chemical, Consolidate Domestic Explosive Chemicals Industry
Year:2009 ISSUE:35
Click:348    DateTime:Dec.16,2009
DunAn to Control Jiangnan Chemical, Consolidate Domestic Explosive Chemicals Industry   

Anhui Jiangnan Chemical Co., Ltd. (Jiangnan Chemical, SZ: 002226) said November 27th, 2009 to issue up to 63 million domestic (denominated A) shares to DunAn Holding Group and Anhui DunAn Chemical Group Co., Ltd. at RMB28.36 apiece in exchange for shares held by DunAn Holding and DunAn Chemical in other companies.
   DunAn Holding will hand over its 84.265% stake in Xinjiang Tianhe Chemicals Co., Ltd., 55% in Sichuan South Yongsheng Chemicals Co., Ltd., 82.3213% in Sichuan Mianzhu Xingyuan Specialty Chemicals Co., Ltd., 77.5% in Fujian Zhangzhou Jiuyijiu Chemicals Co., Ltd., 75.5% in Henan Huatong Chemicals Co., Ltd. and 49% in Anhui Hengyuan Tech & Research Chemicals Co., Ltd. to Jiangnan Chemical. And DunAn Chemical will transfer its 90.36% interest in Anhui DunAn Civil Explosive Equipment Co., Ltd. and 81% in Hubei Shuaili Chemicals Co., Ltd. to Jiangnan Chemical. The assets were valued at RMB1.7867 billion as of October 31st, 2009, according to initial estimates.
   Jiangnan Chemical said the major asset restructuring will help improve the company's business integrity and increase its profitability. It's also conducive to highlight the company's main business and increase the ability to resist risks.
   Jiangnan Chemical engages in the manufacture and sales of colloidal emulsion explosives and powdery emulsion explosives, with annual production capacity of 66 000 tons and occupying over 30% of the Anhui provincial market. The company's emulsion explosives capacity is the largest of its kind in China.
   DunAn Holding's chemical subsidiary focuses on the research, manufacture, marketing of civil explosive chemicals. It also provides technical support services. It controls about 20 manufacturing and marketing subsidiaries including DunAn Chemicals Cambodia Company, Anhui DunAn Chemical Group Co., Ltd., Anqing Xiangke Chemicals Co., Ltd. and Hubei Shuaili.
   DunAn Holding has its own blueprint in the civil explosive chemicals business. It aims to become a leader in the industry in China, or even in Asia, by restructuring and acquiring companies home and abroad, consolidating and setting up research and development centers.
   Industry analysts said with the share placement, DunAn Holding is injecting assets to Jiangnan Chemical and getting control of the company, in a key step of its consolidation effort.
   Meanwhile, Jiangnan Chemical, headquartered in Ningguo city, Anhui province, said it will build a 12 000 t/a production line for powdery emulsion explosives.