Oxiranchem to Buy 66% of Sichuan Sedar to Enlarge EO Chain

An agreement on an capital increment and equity transfer of Sichuan Sedar Chemical Co., Ltd. was signed by Liaoning Oxiranchem, Inc. with KINGSDA (Chengdu) High-Tech Co., Ltd. (Chengdu High-Tech), Jiaye Petrochemical Co., Ltd. (Jiaye Petrochemical) and Sichuan Sedar on June 24, 2017, according to an announcement from Oxiranchem on June 26.
Oxiranchem contributed RMB204 million to increase the capital of Sichuan Sedar, of which RMB104.08 million became registered capital of Sichuan Sedar and RMB99.92 million was set aside as reserve capital. Since the capital increment, Oxiranchem holds 51% of Sichuan Sedar’s shares.
After completion of the capital increment, Oxiranchem intends to acquire an additional 15% of Sichuan Sedar’s shares from Chengdu High-Tech for RMB60 million, which will bring Oxiranchem’s share of Sichuan Sedar to 66%.
Chengdu High-Tech has promised to accept RMB60 million to complete Oxiranchem’s acquisition of stock within one year after the capital increment. This acquisition will include but not be limited to a direct increase of shareholding in the secondary market and a block trade transfer.
Sichuan Sedar has the advantage of possessing the largest ethoxylation unit and largest ethylene oxide unit in southwest China, according to the announcement. The company’s main business is producing and selling polycarboxylate superplasticizer polyether monomer. It controls around 40% of the market share for the product in southwest China. The company is still has room for improvement in both productivity and operating rate. After the reformation, its capacity for producing polycarboxylate superplasticizer polyether monomer will reach 200 000 t/a.