China’s Veyong Bio-Chemical Co to fully acquire Xinneng Mining

14 February 2012 09:59  [Source: ICIS news]

SINGAPORE (ICIS)--Shanghai-listedVeyong Bio-Chemical Co plans to fully acquire Xinneng Mining Co, which mainly produces coal-based chemicals in Inner Mongolia, for yuan (CNY) 7.2bn as ($1.14bn) as part of its strategic expansion, a source from Veyong Bio-Chemical said on Tuesday.

Xinneng Mining, which is owned by ENN Holdings Ltd and six other stockholders, operates a 600,000 tonne/year methanol plant and a 400,000 tonne/year dimethyl ether (DME) plant at Erdos in Inner Mongolia.

Veyong Bio-Chemical will issue new shares at CNY10.98/share ($1.74/share) to pay for the planned acquisition, the company said in a statement to the Shanghai Stock Exchange.

Veyong Bio-Chemical Co is mainly engaged in manufacturing pesticides and biochemical products in Hebei province.

($1 = CNY6.30)

By: Rachel Yang

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