ADAMA Ltd. completed the acquisition of 50% stake in Shanghai Dibai Plant Protection Co., Ltd from Jiangsu Huifeng Bio Agriculture Co., Ltd..
December 30, 2020
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ADAMA Ltd. (SZSE:000553) agreed to acquire 50% stake in Shanghai Dibai Plant Protection Co., Ltd from Jiangsu Huifeng Bio Agriculture Co., Ltd. (SZSE:002496) for CNY 370 million on November 6, 2019. The consideration of CNY 30 million will be paid no latter than five business days after the approval by Huifeng's shareholders meeting or the approval by the government entities. At a time of closing ADAMA Ltd will pay remaining CNY 340 million by the way of paying CNY 310 million to Jiangsu Huifeng Bio Agriculture Co., Ltd and CNY 30 million to an escrow account. The consideration will be paid in cash. Under the term of the transaction, Shanghai Dibai Plant Protection Co., Ltd will get the exclusive, indefinite, royalty-free rights to license Huifeng's existing and future registrations in China. Shanghai Dibai Plant Protection Co., Ltd will be jointly managed by ADAMA Ltd and Jiangsu Huifeng Bio Agriculture Co., Ltd and will have equal representation on the board of directors until the overall transaction is concluded. ADAMA Ltd will be responsible for setting the Shanghai Dibai Plant Protection Co., Ltd commercial, marketing and branding direction.
For the financial year December 31, 2018, Shanghai Dibai Plant Protection Co., Ltd. reported the revenue of approximately CNY 535 million, total assets of approximately CNY 170 million, net income of approximately CNY 55 million and net assets of approximately 31 million. The transaction is subject to completion of appraisal report, definite agreement, resumption of the majority of Huifeng's formulation production activities, all requisite corporate and regulatory approval, approval from the board of directors of ADAMA Ltd and Jiangsu Huifeng Bio Agriculture Co., Ltd and approval from the Jiangsu Huifeng Bio Agriculture Co., Ltd shareholders. The board of directors of Jiangsu Huifeng Bio Agriculture Co., Ltd approved the transaction. On February 26, 2020, the Board of ADAMA Ltd. approved the transaction. As of October 29, 2020, the transaction is expected to close in coming weeks subject to customary approvals and Closing conditions.
ADAMA Ltd. (SZSE:000553) completed the acquisition of 50% stake in Shanghai Dibai Plant Protection Co., Ltd from Jiangsu Huifeng Bio Agriculture Co., Ltd. (SZSE:002496) on December 31, 2020. Post completion, ADAMA owns 51% stake in Shanghai Dibai.
ADAMA Ltd., formerly Hubei Sanonda Co., Ltd., is a China-based off-patent crop protection company. Together with its wholly-owned subsidiary, Adama Agricultural Solutions Ltd., the Company is mainly engaged in the development, production and marketing of herbicides, insecticides, fungicides, plant growth regulators and seed treatments. The Companyâs product portfolio consists of various kinds of active ingredients and end-use products. The Company also owns research and development (R&D) and manufacturing facilities across the world, with two main development and operational hubs in Israel and China. The Company distributes its products in domestic market and to overseas markets.