Help Desk -
9717405332, 9599714297, 9810335381
Email
Password

China Metal enters sale and purchase agreement with Yuanxin Ventures Limited

Metal News - Published on Thu, 21 Dec 2017

Image Source: licdn.com
China Metal Resources Utilization Limited announced that the Company has entered into the Sale and Purchase Agreement with Yuanxin Ventures Limited ("Yuanxin") on 15 December 2017, pursuant to which the Company agreed to purchase, and Yuanxin agreed to sell, 100 shares in Silver Eminent Group Limited ("Silver Eminent Group"), for an aggregate consideration of HK$317,647,000, of which 50%, HKD 158,823,500, shall be settled in cash and the remaining 50% shall be settled by way of allotment and issue of Consideration Shares.

The consideration is subject to adjustment pursuant to the Earn-out Arrangement. Assuming the maximum number of Consideration Shares is being allotted and issued to Yuanxin, 41,796,000 Shares will be issued under the Sale and Purchase Agreement, representing approximately 1.69% of the issued share capital of the Company as at the date of this announcement and approximately 1.67% of the issued share capital of the Company as enlarged by the allotment and issue of the Consideration Shares. The Consideration Shares to be issued will rank pari passu in all respect with the Shares then in issue on the relevant issue date.

Silver Eminent Group is principally engaged in the production of copper products through Mianyang Zhaofeng Copper Co Ltd ("Mianyang Zhaofeng"), its subsidiary established in the PRC. Mianyang Zhaofeng has entered into the Fixed Asset Leasing Agreements with Sichuan Longhua Electronic Equipment Co in which Mianyang Zhaofeng agreed to lease equipment and factory premises for the production of copper products, such equipment and factory premises under lease are estimated to be sufficient to produce a maximum of 30,000 tonnes of copper products on an annual basis.

Mr Yu Jianqiu chairman of the Company said that "Both the Company and Yuanxin are principally engaged in the production of copper products, we expect the acquisition to have immediate synergy effect, enabling us to diversify and strengthen our revenue sources and accelerate our growth and developments in the near future, further enhancing our leading position in the scrap copper industry. At the same time we will continue to strive to maximize the return for our shareholders."

Source :

Posted By : Rabi Wangkhem on Thu, 21 Dec 2017
Related News from Metal segment