By Think Real - According to the announcement published by Hubei Sanonda Co., Ltd. (Sanonda) in Nov. 2016, China National Agrochemical Corporation (CNAC, a wholly-owned subsidiary of ChemChina), through its overseas wholly-owned subsidiary CNAC International Pte. Ltd.(CNAC International), completed acquisition of 40% stake in ADAMA Agricultural Solutions Ltd. (ADAMA), from Koor Industries Ltd. (Koor). Meanwhile, CNAC also acquired entire equity stake in ADAMA, which was transferred from CNAC International. Both transactions were completed the delivery of transferred equities by 22ndNovember, 2016. After the transactions, China Agrochemical directly owned 100% stake in ADAMA.
According to Sanonda, in the next step, CNAC will transfer 100% of ADAMA's shares to Sanonda. Based on the assets reorganization plan that released in Sept. 2016, the asset valuations of ADAMA was approximately USD2.8 billion (equivalent to 18.6 billion yuan).
As of the announcement, the relevant intermediaries are all carrying out relevant work including audit, assessment and evaluation reports for record of underlying assets involved in this reorganization. Sanonda and the parties concerned are actively promoting the above-mentioned work. The Board of Directors of the company will hold a board meeting after the aforesaid work has been completed and then issue a notice of the stockholders' meeting. According to the "Administrative Rules for Major Asset Reorganization of Listed Companies" and the relevant provisions of the Shenzhen Stock Exchange, the company will announced the latest progress of this major asset reorganization every 30 days beginning from the disclosure of the assets reorganization plan to the day when the notice of a general meeting is sent out.
Sanonda said this major assets reorganization still need to be reconsidered by the Board of Directors and should be deliberated and approved by the State-owned Assets Supervision and Administration Commission of the State Council. Moreover, it also need to get approval from the company's shareholders' meeting and be submitted to the China Securities Regulatory Commission for approval. There is uncertainty in whether the transaction can be approved and the time about when to get all the ultimately relevant approvals is not certain as well.