CHINA AGROTECH (HKG:1073) entered into the S&P Agreement. Pursuant to which the Company agreed to acquire all issued shares in the Target Company (Present Sino Limited), at an aggregate Consideration of HK$1,000 million to be satisfied by the issue of the Promissory Notes and the Convertible Bonds.
The principal business of the Target Group is research and development, nursing, planting and sales of landscaping seedlings, led by whitebark pine and other rare seedlings. The PRC Subsidiary's current seedling bases are located in Shanxi Province and Beijing, the PRC, and is planning on the construction of new seedling promotion parks in Shanxi, Beijing and Tianjin, the PRC.
The Directors are optimistic about the prospect of seedling industry in the PRC and are of the view that the acquisition of the Target Group will allow the Company to diversify its scope of agriculture business and further utilise its distribution network of agricultural resources products developed over the years, enlarge its asset base and enhance its source of income.
