Hebang Reaps 5% Equity in Australian Farm Services Firm, Will Up Holding
Tang Shihua
DATE:  Mar 29 2018
/ SOURCE:  Yicai
Hebang Reaps 5% Equity in Australian Farm Services Firm, Will Up Holding Hebang Reaps 5% Equity in Australian Farm Services Firm, Will Up Holding

(Yicai Global) March 29 -- Sichuan Hebang Biotechnology Co. has acquired five percent of the equity of an Australian agricultural services company and plans to further increase its shareholding in the open market afterwards.

The investment seeks to open new marketing channels for the company's pesticides and chemical fertilizers and introduce the investee's advanced agricultural services and technologies.

Hebang bought into Australia-listed Elders Ltd. [ASX:ELD] (ELD) through a wholly-owned Hong Kong unit in a deal worth AUD29 million (USD22.2 million), the mineral and chemical product producer and agriculture service supplier headquartered in China's southwestern Sichuan province said yesterday in a statement.

The company's final holding will rise no higher than 19.99 percent, with a total investment of USD93 million, per the statement.

The acquisition of this Australian comprehensive agriculture service company will expand Hebang's international marketing channels for the pesticides PMIDA, glyphosate and ammonium chloride, as well as its chemical fertilizers and will help it introduce ELD's intelligent agricultural system and bring quality Australian produce to China.

Hebang's board of directors authorized the company to buy the Australian firm's equity in April. The company is obligated to carry out disclosure of the change in its shareholding, Australian Stock Exchange rules mandate. The company therefore reported the news to the Shanghai and australian stock exchanges concurrently.

ELD mainly deals in systemic agricultural services in Australia and New Zealand and operates over 440 outlets in those countries and other markets. It owns broad and advanced distribution channels for agricultural materials and services and operates subsidiaries in the Chinese mainland and Hong Kong.

ELD's largest shareholder is Schroder Investment Management Australia Ltd., which holds 6.23 percent. No other shareholders have over five percent, the statement said.

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Keywords:   ASX,Stock Accumulation,Australia,Elders Limited,Agriculture Service,Hebang