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Gansu Yasheng to buy 1.16b yuan in assets

By Tong Hao (chinadaily.com.cn)
Updated: 2009-03-12 19:52

Gansu Yasheng Industrial (Group) Co Ltd, a modern agriculture company, said it plans to buy 1.16 billion yuan ($170 million) in farming-related assets from its controlling shareholder through a share placement to improve its asset quality and core competitiveness.

Yasheng Group plans to issue 295.8 million shares, priced at 3.91 yuan per share, to its controlling shareholder Gansu Nongken Group, the Shanghai-listed company said in a statement filed on Thursday.

Nongken Group, in turn, will buy these shares with its agriculture-related assets of 10 pieces of lands and seven farms, which brings Yasheng Group about 53,333 hectares of land, the company said.

After the deal, Nongken Group will control 29.18 percent of the total shares of Yasheng Group, remaining its controlling shareholder.

In 2008, Yasheng Group realized business revenue of 1.25 billion yuan, a 7.62 percent increase year-on-year, while its net profit increased by 15.98 percent to 68.14 million yuan, according to its annual financial report.