China Resources Double-Crane Pharmaceutical agreed on 29 July to buy a 23.5% controlling stake in Shenzhen-listed Lier Chemical, China's largest maker of chloropyridine pesticide ingredients, for CNY5.66bn in cash.
Why China Resources Double-Crane Pharmaceutical Co., Ltd. is buying Lier Chemical Co., Ltd. (23.5% controlling stake)
China Resources Double-Crane said the deal lets it quickly industrialise synthetic-biology products using Lier's manufacturing base, while Lier can draw on its synthetic-biology technology and management experience, building a second growth curve for the buyer.
Deal terms and financing
The buyer will pay CNY30.07 for each of the 188.1 million shares, funded from own or raised funds. A deposit of at least 30% of the price is due within five business days of signing, and the balance before the shares are transferred, within five business days of state-asset approval.
Regulatory approvals and timing
The transfer needs approval from state-owned asset regulators, antitrust clearance and a Shenzhen Stock Exchange compliance confirmation. It is classed as a major asset restructuring, and the buyer said it would not yet call a shareholder meeting because audit and valuation work was still under way.
Market context
Lier was founded in 1993, is headquartered in Mianyang, Sichuan, and is China's largest producer of chloropyridine pesticide ingredients and a large-scale maker of glufosinate-ammonium. China Resources Double-Crane ranked first in the public selection of a transferee, announced on 15 July, ahead of two Sichuan state-owned groups, Shudao Investment Group and Sichuan Energy Development Group, according to Time Finance via 36Kr.
