Hong Kong, July 4, 2008 – Global Sweeteners Holdings has announced an agreement to takeover Jinzhou Yuangcheng Bio-chem Technology Co for HK$520 million.
Global Sweeteners will acquire 100% of Jinzhou Yuangcheng from Global Bio-chem Technology Group.
The company revealed it will pay HK$156 million in cash, as well as issuing a HK$364 million unsecured loan note that is due for repayment after five years.
A statement from Global Sweeteners said Jinzhou Yuancheng was situated in Liaoning Province, the PRC and is a PRC sino-foreign equity joint venture enterprise established on 6 August 2001 under the laws of the PRC with a registered capital of US$12,659,400.
The principal business of Jinzhou Yuancheng is manufacture and sales of corn starch and the Coproduct.
It has a corn starch manufacturing plant, situated on a land with a site area of approximately 370,000 sq. m. in Jinzhou, the PRC, with a gross floor area of more than 94,000 sq.m. and the production capacity of approximately 420,000 mtpa of corn starch and 180,000 mtpa of co-products.
Based on the audited accounts of Jinzhou Yuancheng prepared in accordance with the HKFRS for the year ended 31 December 2007, the net assets value of Jinzhou Yuancheng was approximately RMB367 million as at 31 December 2007. Based on the same audited accounts, for each of the two years ended 31 December 2007, the net profit before tax of Jinzhou Yuancheng amounted to approximately RMB89 million and approximately RMB71 million respectively and for each of the two years ended 31 December 2007, the net profit after tax attributable to the shareholders of Jinzhou Yuancheng amounted to approximately RMB88 million and RMB58 million respectively.
Trading in Global Sweetener’s share was halted on the Hong Kong Stock Exchange on 30 June ahead of the announcement.
As reported by FLEXNEWS, Global Sweeteners was spun off by Global Bio-chem in September 2007.