Yantai, Shandong – Wanhua Chemical has finished absorbing its controlling shareholder, Wanhua Chemical Industry (WCI).
The deal cost CNY 52bn ($7.7bn), which was paid in full by private placement to WCI’s shareholders. Wanhua Chemical added 406m new shares or when the deal closed on 31 January.
Former WCI shareholder Yantai Guofeng Investment Holdings has become Wanhua Chemical’s new controlling shareholder, with a 39.5% stake. The Yantai State-owned Assets Supervision and Administration Commission remains the ultimate controlling entity.
The takeover was first announced in 2017, with details for the plan made public in May 2018.
WCI’s assets and liabilities, including its holdings in BorsodChem and other polyurethane related businesses such as a Chlor-Alkali affiliate in Yantai, Shandong and an MDI maker in Ningbo, Zhejiang, have been absorbed by Wanhua Chemical.
The transaction makes Wanhua Chemical the world’s largest MDI producer, the company claimed.
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