China’s NDRC approves Sinochem’s acquisition of Carlyle Sinorgchem

08 October 2012 08:58  [Source: ICIS news]

SINGAPORE (ICIS)--China’s National Development and Reform Commission (NDRC) has approved state-owned company Sinochem International’s acquisition of Hong Kong-based investment holding firm Carlyle Sinorgchem Industry in August, the country’s economic planning agency said on Monday.

The acquisition of Carlyle Sinorgchem, if approved, is estimated to be worth yuan (CNY) 1.85bn ($293m).

The acquisition of Carlyle Sinorgchem is part of Sinochem’s planned takeover of China-based rubber chemical additives producer Jiangsu Sinorgchem Technology. 

Sinochem announced in June that it planned to purchase a 61% stake in Jiangsu Sinorgchem for yuan (CNY) 2.82bn ($446m) to increase its presence in the rubber chemical industry. Out of the 61% stake, 40% will be acquired from Carlyle Sinorgchem Industry, while the remaining 21% will be purchased from eight shareholders.

In July, the company said in a statement filed with the Shanghai Stock Exchange that it plans to issue additional shares worth CNY4bn to finance the deal.

The proposal is pending approval from its shareholders and securities regulator China Securities Regulatory Commission, Sinochem said on 21 September.

($1 = CNY6.32)

By: Fanny Zhang
+65 6780 4359

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