Nanjing, Jiangsu – Systems house Hongbaoli has terminated its acquisition of Xionglin New Material Technology, China’s largest TPU film maker, it said in a statement.
Last November Hongbaoli acquired a 12% stake in Xionglin at CNY 87m ($13m) from its chairman controlling shareholder He Jianxiong with a 67.1% ownership, and in December signed agreement with He and other shareholders to take over the remaining 88%.
In March as UTECH-polyurethane.com reported at the time, He informed Hongbaoli of his decision to unilaterally terminate the agreement.
'All parties of the transaction have failed to reach a consensus after negotiations over an extended period, and such major assets reorganisation cannot be substantially advanced,' said Hongbaoli’s statement.
The company also discontinued its private placement to raise CNY 331m for the buyout.
The termination of the transaction will not significantly hit Hongbaoli’s operation and financial conditions, the statement added. The company will continue to pursue its expansion through mergers and acquisitions.
Exchange Rates: Xe.com 14 August 2017