News and Announcements
AsiaPhos to Acquire LYR Group
- Published July 06, 2015 4:17PM UTC
- Publisher Wholesale Investor
- Categories Company Updates
SINGAPORE – 6 July 2015
AsiaPhos Limited (“AsiaPhos” or the “Company”, and together with its subsidiaries, the “Group”), a Singapore-headquartered mineral resources company focused on exploring and mining phosphate with a vertically-integrated business model, today announced that it will acquire the entire issued and paid-up share capital of LY Resources Pte. Ltd. (“LYR”) from Mr. Luo Yong (罗勇), who holds a 50% equity interest in 绵竹市大山矿业有限责任公司 (Mianzhu Dashan Mining Co., Ltd) (“Dashan”), the Group’s co-operation partner in the People’s Republic of China (“PRC”).
This follows the LYR Group (comprising LYR and its subsidiaries) achieving a valuation of approximately RMB 266,580,000 based on an independent valuation report dated 26 June 2015 issued by Jones Lang LaSalle Corporate Appraisal and Advisory Limited. With this valuation, the condition precedent stated in the option agreement between LYR and AsiaPhos (“Call Option”) that the LYR Group be valued at no less than RMB 250,000,000 is met.
The acquisition, for a consideration valued at $36.8 million, will allow AsiaPhos to acquire the economic benefits of an existing co-operation arrangement (“Dashan Arrangement”) presently accruing to its co-operation partner, Dashan. It will also facilitate the ownership of a 55% equity interest in 德阳市峰泰矿业有限责任公司 (Deyang Fengtai Mining Co., Ltd.) (“FengTai”), a company incorporated in the PRC, which holds the FengTai Licence – an exploration licence for barite rocks (重 晶石) in respect of an area situated in the vicinity of the Group’s existing mines in the Sichuan Province of the PRC.
To view the full announcement please download the document below.