Shanghai Luxin Packing Materials Science & Technology Co., Ltd. agreed to acquire 15% stake in Fujian Taixing Special Paper Co Ltd from Lin Shuxia for CNY 150 million.
July 05, 2014 at 12:00 am EDT
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Shanghai Luxin Packing Materials Science & Technology Co., Ltd. (SZSE:002565) agreed to acquire 15% stake in Fujian Taixing Special Paper Co Ltd from Lin Shuxia for CNY 150 million in cash on July 4, 2014. In a related transaction, Shanghai Luxin also agreed to acquire 26% stake in Dali Meideng Printing Limited Company, 60% stake in Yuxi Printing Co., Ltd. and 56% stake in Qujing Fupai Color Printing Co., Ltd. The deal is funded through the proceeds of private placement. Within 10 days after Shanghai Luxin's Directors' approval agreement, Shanghai Luxin will pay 10% of the share transfer price, within 10 days after the completion of the share transfer's change of business registration, Shanghai Luxin will pay 40% of the share transfer price and within 10 days after the private placement's proceeds are in place, the remaining amount will be a one-time payment.
Fujian Taixing had total assets of CNY 420.44 million, owner's equity of CNY 241.33 million, revenues of CNY 568.28 million, operating profit of CNY 113.53 million and net profit of CNY 90.35 million for the year ending December 31, 2013. The deal was approved by Board of Directors of Shanghai Luxin Packing Materials Science & Technology on July 4, 2014.
Shanghai Shunho New Materials Technology Co.,Ltd., formerly Shanghai Luxin Packing Materials Science & Technology Co., Ltd., is a China-based company principally engaged in the research, development, manufacture, processing and distribution of packaging products. The Company's main products include vacuum metalized papers, polypropylene fibers for cigarettes, as well as white cardboards and laminated papers. The Company is also involved in the provision of printing materials, hologram papers as well as optical anti-counterfeiting films, among others. The Company's products are applied in the packing of tobaccos, food, beverages, sports goods, liquors and others. In addition, the Company also engages in the research, manufacture and distribution of natural biological fertilizer and organic feed, as well as the development of network technology, among others. The Company distributes its products within domestic market and to overseas markets.
Shanghai Luxin Packing Materials Science & Technology Co., Ltd. agreed to acquire 15% stake in Fujian Taixing Special Paper Co Ltd from Lin Shuxia for CNY 150 million.