Fujian Sannong to enter property market by share placement
Shenzhen-listed Fujian Sannong Group Co Ltd<000732>, which is engaged in the manufacture and distribution of agricultural and pharmaceutical products, on Jun. 10 announced that it will issue up to 784.12 million shares at an average price of RMB 3.09 apiece to its controlling shareholder, Tai He Investment, to acquire a 100% stake in a real estate firm, sources reported.
Shares of Fujian Sannong have been suspended from trading for more than two years due to three consecutive years of losses. After the share issuance, Tai He will have 809.4 million shares in Fujian Sannong Group.
The plan is waiting for approval from the China Securities Regulatory Commission (CSRC).
The real estate firm, which is located in Fuzhou City, Fujian Province, currently has an apartment project in Taijiang District and a residential property project and a villa project in Cangshan District. On Apr. 30, 2009, the audited book value of net assets of the property firm was RMB 946.97 million.
Tai He said that if the placement is completed before Jun. 30 this year, Fujian Sannong Group's net profit attributable to its parent will exceed RMB 686.96 million.
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