To acquire 4.11% of balance of equity in Yong’an Chemical, Yong’an Chemical becoming BSM Chemical’s wholly-owned subsidiary

Date:04-26-2024

On April 20, Chinese agrochemical company Shaoxing BSM Chemical Co., Ltd announced that the company would spend self-raised funds of RMB49.32 million yuan in acquiring 4.11% stakes in its controlled Yong’an Chemical, held by minority shareholders of Yong’an Chemical. 

After the transaction, BSM will hold 100% stake in Yong’an Chemical.

According to the announcement, Yong’an Chemical will become a wholly-owned subsidiary of BSM Chemical through the equity transaction, thus improving BSM’s efficiency in making decisions on the business operations of the subsidiary and reducing management costs and risk. It will also benefit BSM’s overall resource allocation and business deployment, aligning with the company’s business strategy and planning.

Jiangsu Yong’an Chemical was established in December 2005, mainly dealing with pendimethalin TC and formulations, and relevant chemical intermediates. Before the acquisition, 95.89% of stakes in Yong’an Chemical were held by BSM Chemical, the holding company of Yong’an Chemical. 

So far as the financial standing is concerned, Yong’an Chemical’s total assets, net assets, operating income, and net profit as of December 31 of 2023 were respectively, RMB797.1729 million yuan, RMB689.2042 million yuan, RMB598.7958 million yuan and RMB94.0061 million yuan.

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