Tibet Boshun Venture Capital Co., Ltd. entered into an equity transfer agreement to acquire an additional approximately 15.64% stake in Tibet Hengkun Smelter Co., Ltd. from Tibet Huayu Mining Co., Ltd. for CNY 0.02 million.
December 07, 2020
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Tibet Boshun Venture Capital Co., Ltd. entered into an equity transfer agreement to acquire an additional approximately 15.64% stake in Tibet Hengkun Smelter Co., Ltd. from Tibet Huayu Mining Co., Ltd. (SHSE:601020) for CNY 0.02 million on December 8, 2020. The consideration will be paid to Tibet Huayu Mining Co., Ltd. in cash in one lump sum before December 15, 2020. Prior to the acquisition Tibet Boshun Venture Capital Co., Ltd. held 36.36% stake and Tibet Huayu Mining Co., Ltd. holds 63.63% stake in Tibet Hengkun Smelter Co., Ltd. Post completion, Tibet Boshun Venture Capital Co., Ltd. will hold 52% stake in Tibet Hengkun Smelter Co., Ltd. For the period ended September 30, 2020, Tibet Hengkun Smelter Co., Ltd reported total assets of CNY 23.35 million and net liabilities of CNY 0.67 million. For the period ended December 2019, Tibet Hengkun Smelter Co., Ltd reported total assets of CNY 44.9 million, revenues of CNY 0.5 million, net assets of CNY 18.26 million and net loss of CNY 6.63 million. The transaction does not need to be submitted to the Tibet Huayu Mining Co., Ltd. shareholders meeting for deliberation. The transaction has been reviewed and approved at the nineteenth meeting of the third Board of Directors and the sixteenth meeting of the third Board of supervisors of Tibet Huayu Mining Co., Ltd. on December 8, 2020.
Tibet Huayu Mining Co., Ltd. is principally engaged in mining, ore dressing, geological survey and trading businesses of nonferrous metal. The Company's major products include zinc concentrate, lead antimony concentrate (silver-bearing) and copper concentrate, among others. In addition to the core business of mining production, the Company operates non-ferrous metals trading business.
Tibet Boshun Venture Capital Co., Ltd. entered into an equity transfer agreement to acquire an additional approximately 15.64% stake in Tibet Hengkun Smelter Co., Ltd. from Tibet Huayu Mining Co., Ltd. for CNY 0.02 million.