Tibet GaoZheng Explosive Co., Ltd. completed the acquisition of 34.9% stake in Chengyuan Mining Development Co., Ltd. from group of sellers.
December 23, 2019 at 11:00 pm
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Tibet GaoZheng Explosive Co., Ltd. (SZSE:002827) agreed to acquire 34.9% stake in Chengyuan Mining Development Co., Ltd. from group of sellers for CNY 75.8 million on September 16, 2019. Tibet GaoZheng Explosive Co., Ltd. agreed to acquire 14.5 million shares. In a related transaction, Tibet GaoZheng Explosive Co., Ltd. agreed to increase capital of Chengyuan Mining Development Co., Ltd. by obtaining 16.46 million shares . Post completion of both transactions, Tibet GaoZheng Explosive Co., Ltd. will own 51% stake in Chengyuan Mining Development Co., Ltd. For the period ended December 31, 2018, Chengyuan Mining Development Co., Ltd. has reported total assets of CNY 155.52 million, owner's equity of CNY 68.65 million, revenues of CNY 195.66 million, total profit of CNY 31.92 million and net profit of CNY 22.46 million.
Transaction is still subject to approval from shareholders of Tibet GaoZheng Explosive Co., Ltd and higher-level state-owned assets management institution of Tibet GaoZheng Explosive Co., Ltd. The Board of Directors of Tibet GaoZheng Explosive Co., Ltd. has approved the transaction on September 16, 2019. Second Board of Supervisors of Tibet GaoZheng Explosive Co., Ltd has also approved the transaction. The Board and shareholders of Chengyuan Mining Development approved the transaction on September 16, 2019 and November 6, 2019 respectively. Tibet GaoZheng Explosive received holding shareholder Tibet Gaozheng Building Material Group Co., Ltd.’s approval on October 30, 2019. The shareholders of Tibet GaoZheng Explosive approved the transaction on November 6, 2019. Liu Wanchen of Fortune Securities Co.,Ltd acted as financial advisor, Chen Yang, Xiu Rui and Neng Xiaoyan of Dacheng Law Offices as legal advisors, Yang Zhiguo of BDO SHU LUN PAN Certified Public Accountants (Special General Partnership) as accountant and Quan Zhongguang of China Enterprise Appraisals Consultation Co., Ltd acted as evaluator to Tibet GaoZheng Explosive Co., Ltd.
Tibet GaoZheng Explosive Co., Ltd. (SZSE:002827) completed the acquisition of 34.9% stake in Chengyuan Mining Development Co., Ltd. from group of sellers on December 24, 2019.
Tibet GaoZheng Explosive Co., Ltd. is a China-based company principally engaged in the manufacture and distribution of civil explosive materials and industrial explosives, as well as the provision of blasting services. Its products mainly include powdery emulsion explosives, gelatinous emulsion explosives, blasting caps, as well as industrial electric detonators and industrial cables, among others. Its products are mainly applied in infrastructure construction and national defense construction such as coal, metal, non-metallic mineral resources mining, hydropower and water conservancy. The Company mainly operates its business mainly in domestic market, with Tibet Autonomous Region as its main market.
TIBET GAOZHENG EXPLOSIVE CO., LTD. 
