Hebei Sanyuan, CAG agree on split of Sanlu assets
BJSFF | Quote | Chart | News | PowerRating -- Beijing Capital Agribusiness Group
(CAG) has agreed to pay 58.5 million yuan (8.6 million U.S.
dollars) for the non-performing assets of the Sanlu Group, which
was bankrupted in last year's melamine contamination scandal.
CAG and Hebei Sanyuan Foods Co. -- respectively the parent and
subsidiary of the Shanghai-listed Beijing Sanyuan Foods Co. --
jointly bid 616.5 million yuan for the core assets of Sanlu in
March.
Under an agreement, Hebei Sanyuan was to pay for Sanlu assets
after Beijing Sanyuan Foods got government approval to raise funds
for assets purchase by private share-issues.
CAG, then known as Beijing Sanyuan Group Co., was to take over
any flawed assets or debt related to the assets incurred before
the actual payment.
Hebei Sanyuan had found some Sanlu assets were defective or
impaired after the bid, which could lead to malfunctions, Beijing
Sanyuan Foods said in a statement to the Shanghai Stock Exchange
Friday.
Hebei Sanyuan Foods has agreed to pay 558 million yuan (81.7
million U.S. dollars) for the remaining assets.
The Sanlu assets auctioned in March included land use rights,
manufacturing equipment and a 98.8-percent stake in a dairy
producer in Xinxiang city, Henan Province.
Beijing Sanyuan Foods said Tuesday that it had raised up to 1
billion yuan by issuing shares to its parent company CAG.
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