On 2 November, Sinofert Holdings Ltd. announces to issue about 714 million new shares (10.31% of the enlarged share capital of the company) to its substantial shareholders including Sinochem HK and PCS at the subscription price of HK$7 per share. The entire net proceeds from the subscription amounts to approximate HK$5 billion and will be used to finance the acquisition of 18.49% share of Qinghai Salt Lake Potash Co. Ltd from Sinochem Corporation.
Sinochem HK and PCS subscribe 519.9 million and 194 million new subscription shares of Sinofert respectively. Thereafter, their shareholding will increase to 52.4% and 19.58% respectively from the previous 50.06% and 18.7% respectively.
In the middle of last month, Sinochem Fertilizer Company Co. Ltd., Sinofert’s wholly subsidiary, entered an agreement with Sinochem Group. Sinochem Fertilizer agreed to acquire 18.49% share of Qinghai Salt Lake Potash Co. Ltd with RMB6.739 billion. The acquisition agreement is subject to the reporting, announcement and independent shareholders' approval requirements under Chapter 14A of the HK Exchange's Listing Rules.