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Tongzi Chemical, Guizhou’s largest nitrogen fertilizer manufacturer, is to be sold in an initial public offering. Author/Source: Sinochem News Network; Date: April 16, 2020; Clicks: 18. Guizhou Shengjitang Pharmaceutical Industry Co., Ltd. (600227) announced on the 15th that, as of the end of the bidding period on April 13, no potential buyers had been found for its wholly-owned subsidiary, Guizhou Chitianhua Tongzi Chemical Co., Ltd., which is responsible for the company’s chemical manufacturing operations. Shengjitang will convene its board of directors again to discuss the subsequent disposal of the target assets. Tongzi Chemical is currently the largest nitrogen fertilizer manufacturer in Guizhou. Starting from March 30, it is offering to sell 100% of its shares at an estimated value of 933.3362 million yuan through the Guizhou Sunshine Property Rights Exchange. The transferee must be a corporate entity that has been legally in operation in China for over 20 years, possesses experience in the production, operation, and management of products such as synthetic ammonia, urea, and methanol, as well as in coal chemical industry operations, and continues to be in business. On February 27, 2020, Tongzi Chemical began a routine one-month shutdown for maintenance of its production facilities. On March 27, its urea production facility resumed operations. Due to additional maintenance work, the methanol production system’s start-up process was delayed until April 8, with methanol production beginning on April 12. At present, the production facilities at Tongzi Chemical have fully resumed normal operations. The plan for the public offering of Tongzi Chemical has also drawn the attention of the Shanghai Stock Exchange. On April 13, Shengjitang Company received a query letter from the Shanghai Stock Exchange regarding the disclosure of information on the plan to sell significant assets of Guizhou Shengjitang Pharmaceutical Industry Co., Ltd. The inquiry letter requested Shengjitang Company to provide further explanations and clarifications on 9 issues related to four aspects, including the company’s future operational capabilities, the details and compliance of this transaction, the risks associated with this transaction, as well as the operational and financial conditions of the target company, Tongzi Chemical. A written response was required within 5 trading days, along with corresponding revisions to the plan for the sale of these major assets. Guizhou Shengjitang Pharmaceutical Industry Co., Ltd. was formerly Chitianhua Co., Ltd., a subsidiary of Chitianhua Group controlled by the Guizhou Provincial State-owned Assets Supervision and Administration Commission. Starting in 2014, through methods such as equity transfers and asset restructuring, Chitianhua transformed into a comprehensive company focused on both the pharmaceutical and chemical industries, with Ding Linhong as its controller, and was renamed Shengjitang. Once the listing and transfer of Tongzi Chemical is completed, Shengjitang will transform into a listed company with its \"big health\" business as its sole core business.