Beijing Nutrichem Company Limited (Nutrichem) disclosed the progress of Huapont Life Sciences Co., Ltd’s plan to reduce shares that it holds on 6 Nov., 2021.
Announcement data show that during the reduction period (1 Sept.-4 Nov.), Huapont Life reduced 241 million Nutrichem’s shares through bulk transaction and the transfer of agreement, cashing in USD201.4 million.
Equity reduced from agreement was transferred to Zhejiang Wynca Chemical Group Co., Ltd (Zhejiang Wynca). After the completion of this equity acquisition, Zhejiang Wynca will hold Nutrichem’s 12.3% shares.
The reasons why Huapont Life transferred its shares in Nutrichem is that:
1. Lowering its shareholding proportion, Huapont Life aimed to help Nutrichem to attract new investors, diversify equity structure and optimize corporate governance
2. It is of great significance to its strategic cooperation and industrial coordination
3. It will provide cash flow for Huapont Life’s further development in the future
Nutrichem’s business scope includes researching, developing, producing and selling pesticide TC, intermediate and formulation products, and providing technical services for GLP registration. In 2020, Nutrichem recorded revenue of USD973.3 million, and registered net profit of USD50.8 million.
Zhejiang Wynca said that the transfer of Nutrichem’s shares will enhance the company’s ability to provide integrated plant protection solutions for the industry, expand the company’s agrochemical business scale, and enhance the core competitiveness and sustainable development capabilities of the agrochemical business.
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