Hubei Kailong Chemical Group Co., Ltd. agreed to acquire a 18.36% stake in Shandong Tianbao Chemical Co., Ltd. from Cai Changcun, Ye Ying, Yu Peng, Xuyi Tianhong Investment Center (general partnership) and Zhejiang Yongshi Equity Investment Partnership (limited partnership) for approximately CNY 170 million.
August 24, 2020
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Hubei Kailong Chemical Group Co., Ltd. (SZSE:002783) agreed to acquire a 18.36% stake in Shandong Tianbao Chemical Co., Ltd. from Cai Changcun, Ye Ying, Yu Peng, Xuyi Tianhong Investment Center (general partnership) and Zhejiang Yongshi Equity Investment Partnership (limited partnership) for approximately CNY 170 million on August 25, 2020. As part of the consideration, Hubei Kailong Chemical Group Co., Ltd. will acquire 55.53 million shares at a purchase price of CNY 3.067 per share. As part of the transaction, Hubei Kailong Chemical Group Co., Ltd. will acquire 5.75% stake from Cai Changcun for CNY 53.3 million, 4.93% stake from Ye Ying for CNY 45.6 million, 1.87% stake from Yu Peng for CNY 17.3 million, 4.08% stake from Xuyi Tianhong Investment Center (general partnership) for CNY 38 million and 1.73% stake from Zhejiang Yongshi Equity Investment Partnership (limited partnership) for CNY 16 million in Shandong Tianbao Chemical Co., Ltd. In a related transaction, Hubei Kailong Chemical Group Co., Ltd. acquires 40.72% stake through capital increase. Post completion Hubei Kailong Chemical Group Co., Ltd. hold 59.08% stake in Shandong Tianbao Chemical Co., Ltd. through capital increase and share acquisition. The board of directors of Hubei Kailong Chemical Group Co., Ltd. approved the transaction.
HUBEI KAILONG CHEMICAL GROUP CO., LTD. is principally engaged in the manufacture and distribution of industrial explosives. The Company primarily provides modified ammonium nitrate-fuel oil explosives, including modified ammonium nitrate-fuel oil explosives for rocks; expanded ammonium nitrate explosives, including expanded ammonium nitrate explosives for rocks and expanded ammonium nitrate explosives for coal mines; emulsion explosives, including emulsion explosives for rocks and emulsion explosives for coal mines, as well as seismic explosive columns, including seismic explosive columns with low, medium and high detonation velocities, high power seismic explosive columns, emulsion seismic explosive columns and high strength seismic explosive columns. Its products are applied in petroleum, coal, mining, metallurgy, transportation, hydraulic, electric power, construction, national defense and other fields.
Hubei Kailong Chemical Group Co., Ltd. agreed to acquire a 18.36% stake in Shandong Tianbao Chemical Co., Ltd. from Cai Changcun, Ye Ying, Yu Peng, Xuyi Tianhong Investment Center (general partnership) and Zhejiang Yongshi Equity Investment Partnership (limited partnership) for approximately CNY 170 million.
HUBEI KAILONG CHEMICAL GROUP CO., LTD. 
