Zhonghe Co., Ltd. cancelled the acquisition of Blossom Lithium Industrial Ltd. from Sichuan Yahua Industrial Group Co., Ltd..
April 31, 2017
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Zhonghe Co., Ltd. (SZSE:002070) agreed to acquire Blossom Lithium Industrial Ltd. from Sichuan Yahua Industrial Group Co., Ltd. (SZSE:002497) in stock on November 9, 2015. In a related transaction, Zhonghe Co., Ltd. agreed to acquire Sichuan State Lithium Material Co., Ltd. from a group of sellers on November 9, 2015. Zhonghe will issues shares at CNY 11.53 per share to acquire Sichuan State Lithium Material and Blossom Lithium Industrial. Sichuan Yahua Industrial Group will receive 33.13 million shares as consideration for its 37.25% stake in Sichuan State Lithium Material and 100% stake in Blossom Lithium Industrial. As per new amendment terms on May 20, 2016 Zhonghe Co., Ltd. cancelled the acquisition of 1.24% stake and will acquire 98.8% stake for approximately CNY 2.1 billion in stock. As per the terms, 76.1 million common shares will be issued at CNY 27.3 per share.
During the financial year ended December 31, 2014, Sichuan Blossom had total assets of CNY 205.81 million, shareholder's equity of CNY 13.05 million, revenue of CNY 74.2 million and net loss of CNY 36.34 million. The deal is subject to second approval of Board of Directors of Zhonghe, shareholders of Zhonghe and approval of CSRC. The deal was approved by Board of Directors of Zhonghe on November 19, 2015. New Times Securities Co., Ltd. acted as financial advisor for Zhonghe Co., Ltd.
Zhonghe Co., Ltd. (SZSE:002070) cancelled the acquisition of Blossom Lithium Industrial Ltd. from Sichuan Yahua Industrial Group Co., Ltd. (SZSE:002497) on April 1, 2017.
Sichuan Yahua Industrial Group Co., Ltd. is a China-based company principally engaged in the manufacture and sales of civil explosives. . The Companyâs main products include industrial explosives, industrial detonators, industrial cords, industrial detonators, customized civil explosive products and others. The Companyâs products are mainly applied in mining, hydropower, transportation construction, urban renewal, geological exploration and national defense industries. Through its subsidiaries, the Company is also engaged in the manufacture and sales of lithium carbonate, lithium hydroxide and other lithium salt products. The Company distributes its products in domestic market and to overseas markets.
SICHUAN YAHUA INDUSTRIAL GROUP CO., LTD. 
