Jiangsu Hengshun Vinegar-Industry Co.,Ltd intends to acquire remaining 35% stake in Shanxi Hengshun Mature Vinegar Co., Ltd. from Xinxin (Hong Kong) Co., Ltd. and Zhenjiang Yanyun Agricultural Products Co., Ltd. for CNY 19.2 million.
December 02, 2021
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Jiangsu Hengshun Vinegar-Industry Co.,Ltd (SHSE:600305) intends to acquire remaining 35% stake in Shanxi Hengshun Mature Vinegar Co., Ltd. from Xinxin (Hong Kong) Co., Ltd. and Zhenjiang Yanyun Agricultural Products Co., Ltd. for CNY 19.2 million on December 2, 2021. Under the transaction, Xinxin (Hong Kong) Co., Ltd. will sell 25% stake for a cash consideration of CNY 13.6927 million and Zhenjiang Yanyun Agricultural Products Co., Ltd. will sell 10% stake for a cash consideration of CNY 5.4771 million. Post transaction, Jiangsu Hengshun Vinegar-Industry Co.,Ltd will have 100% stake in Shanxi Hengshun Mature Vinegar Co., Ltd. As of December 2, 2021, no agreement is signed. As of December 15, 2021, Jiangsu Hengshun Vinegar-Industry Co.,Ltd signed an equity transfer agreement to acquire remaining 35% stake in Shanxi Hengshun Mature Vinegar Co., Ltd. from Xinxin (Hong Kong) Co., Ltd. and Zhenjiang Yanyun Agricultural Products Co., Ltd. Jiangsu Hengshun Vinegar-Industry Co.,Ltd intends to use its own funds to fund the acquisition. Shanxi Hengshun Mature Vinegar Co., Ltd. reported total assets of CNY 37.2 million, net assets of CNY 24.1 million, operating income of CNY 26.95, operating profit of CNY 0.45 million and net profit of CNY 0.55 million for the year ended December 31, 2020. Shanxi Hengshun Mature Vinegar Co., Ltd. reported total assets of CNY 40.2 million and net assets of CNY 25.1 million for the year ended May 21, 2021. As on December 2, 2021, board of directors of Jiangsu Hengshun Vinegar-Industry Co.,Ltd have unanimously approved the transaction.
Jiangsu Hengshun Vinegar-Industry Co., Ltd. is a China-based company principally engaged in the production and sales of vinegar and other condiments. The Company's main products include vinegar, white vinegar, cooking wine, soy sauce and pickles. The Company distributes its products in domestic market.