ADAMA Ltd. completed the acquisition of 51% stake in Jiangsu Kelinong Co., Ltd. from Jiangsu Huifeng Bio Agriculture Co., Ltd..
May 30, 2021
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ADAMA Ltd. (SZSE:000553) signed an agreement to acquire 51% stake in Jiangsu Kelinong Co., Ltd. from Jiangsu Huifeng Bio Agriculture Co., Ltd. (SZSE:002496) for approximately CNY 850 million on October 28, 2020. The total cash consideration for both Shanghai Dibai Plant Protection Co., Ltd. and Jiangsu Kelinong Co., Ltd. is approximately CNY 1.2 billion. Post completion, ADAMA Ltd. will hold acquire 51% stake in Jiangsu Kelinong Co., Ltd. In a related transaction, ADAMA Ltd. signed an agreement to acquire 50% of Shanghai Dibai Plant Protection Co., Ltd. from Jiangsu Huifeng Bio Agriculture Co., Ltd. on October 29, 2020. As of January 4, 2021, the Shanghai Dibai Plant Protection transaction was completed.
Jiangsu Kelinong Co., Ltd. reported total assets of CNY 1.88 billion and net assets of CNY 1.45 billion as of May 31, 2020. Closing is subject to customary closing conditions, including regulatory and other corporate approvals, and is further subject to full resumption of production at the relevant facilities of Huifeng. The transaction is also subject to approval of shareholders of Jiangsu Huifeng Bio Agriculture Co., Ltd. The transaction is approved by the Board of ADAMA Ltd. On December 22, 2020, ADAMA Ltd. received a notice of response from the People's Court of Zhengding County, Hebei Province, Beststar sued Jiangsu Huifeng and ADAMA Ltd. On December 11, 2020, the transaction was approved at the 3rd Extraordinary shareholders meeting of Jiangsu Huifeng Bio Agriculture Co., Ltd. As of January 4, 2021, the transaction remains subject to customary closing conditions, including regulatory and other corporate approvals, and is further subject to full resumption of production at the relevant manufacturing facilities of Huifeng. Huaying Securities Co., Ltd. acted as independent financial advisor, AllBright Law Offices acted as legal advisor and Pan-China Certified Public Accountants LLP acted as accountant for Jiangsu Huifeng Bio Agriculture in the transaction.
ADAMA Ltd. (SZSE:000553) completed the acquisition of 51% stake in Jiangsu Kelinong Co., Ltd. from Jiangsu Huifeng Bio Agriculture Co., Ltd. (SZSE:002496) on May 31, 2021.
ADAMA Ltd., formerly Hubei Sanonda Co., Ltd., is a China-based off-patent crop protection company. Together with its wholly-owned subsidiary, Adama Agricultural Solutions Ltd., the Company is mainly engaged in the development, production and marketing of herbicides, insecticides, fungicides, plant growth regulators and seed treatments. The Companyâs product portfolio consists of various kinds of active ingredients and end-use products. The Company also owns research and development (R&D) and manufacturing facilities across the world, with two main development and operational hubs in Israel and China. The Company distributes its products in domestic market and to overseas markets.