Sinochem Hong Kong Holdings Ltd.(SEHK) announced Sunday that it has agreed to acquire the Fertilizer Company from its parent, Sinochem Hong Kong (Group) Company Limited (Sinochem HK) for 5.05 billion Hong Kong dollars (647.44 million US dollars).

SEHK said in a press release that the company will become a leading integrated fertilizer enterprise and the largest importer of fertilizer products in China.

The acquisition price represents approximately 12.87 times the audited net profit of the Fertilizer Company for the year that ended on Dec. 31, 2003. It also represents approximately 2.8 timesthe net asset value of the Fertilizer Company as at Sept. 30, 2004.

SEHK will issue 5.05 billion new shares to Sinochem HK, each priced at one Hong Kong dollar.

Source: Xinhua