Gelonghui May 10, China Xinlianxin Chemical Fertilizer (01866Baccarat540.HK) announcementBaccarat540On May 10, 2024, Xinjiang Xin Lianxin and the buyer (Anhui Lingtong and Xinjiang Blackstone)Baccarat540Enter into a framework agreement with the guarantor and the pledgor, according to which the buyer conditionally agrees to the acquisition, and Xinjiang Xinlianxin conditionally agrees to pay about RMB 13Baccarat540The 100% stake in the target company, Manas County Tianxin Coal Industry Co., Ltd. was sold for a consideration of .74 billion yuan, while the guarantor agreed to provide guarantee, and the pledgor agreed to pledge Henan Xinlianxin shares to ensure that the buyer paid the price in full.
The potential sale can only be confirmed after, among other things, the formal transaction documents have been concluded by the parties to the framework agreement. If the potential disposal is materialized and the underlying shares are delivered, the underlying company will no longer be a subsidiary of the company and the financial results of the underlying company will no longer be consolidated in the group's financial statements.
The target company is a company restructured from a coal mine, which was established in 1995. The target company is mainly engaged in coal mining, coal and product sales and other business. As of the date of this announcement, the subject company has the right to exploit an approved coalfield with an area of 3.72 square kilometers, reserves of about 105 million tons and production scale of 900000 tons.
