Yantai, Shandong – Wanhua is waiting for further regulatory approval on the proposed takeover of its controlling shareholder Wanhua Chemical Industry (WCI). The company made the announcement in a filing on the Shanghai Stock Exchange in November.
The plan received China Securities Regulatory Commission’s approval in September. The approval is valid for 12 months from then.
According to the September filing, the company plans to absorb WCI through private placement of 1.7 billion shares to its shareholders, including:
- 678 m shares to Yantai Guofeng Investment Holdings;
- 336 m shares to Prime Partner International Limited;
- 330 m shares to Yantai Zhongcheng Investment;
- 302 m shares to Shenzhen Zhongkaixin Venture Capital; and
- 70 m shares to Beijing Dejie Huitong Technology.
Wanhua confirmed that it currently has 2.7 bn shares outstanding. Price for the new shares is set at CNY30.4 ($4.4)/share, said the filing.
Meanwhile, the company also announced in November it is to set up a fully owned subsidiary, Wanhua Chemical Singapore Holding, with $80m registered capital.
The new subsidiary will help ‘speed up [our] international strategies and optimise the group’s overseas shareholding structure’, said the company.
Currency Conversion: Xe.com