HONG KONG, Dec. 19, 2017 /PRNewswire/ -- China Metal Resources Utilization Limited ("China Metal Resources" or "the Company") (Stock Code: 1636.HK), China's largest recycled copper products manufacturer, is pleased to announce that the Company has entered into the Sale and Purchase Agreement with Yuanxin Ventures Limited ("Yuanxin") on 15 December 2017, pursuant to which the Company agreed to purchase, and Yuanxin agreed to sell, 100 shares in Silver Eminent Group Limited ("Silver Eminent Group"), for an aggregate consideration of HK$317,647,000, of which 50%, HK$158,823,500, shall be settled in cash and the remaining 50% shall be settled by way of allotment and issue of Consideration Shares.
The consideration is subject to adjustment pursuant to the Earn-out Arrangement. Assuming the maximum number of Consideration Shares is being allotted and issued to Yuanxin, 41,796,000 Shares will be issued under the Sale and Purchase Agreement, representing approximately 1.69% of the issued share capital of the Company as at the date of this announcement and approximately 1.67% of the issued share capital of the Company as enlarged by the allotment and issue of the Consideration Shares. The Consideration Shares to be issued will rank pari passu in all respect with the Shares then in issue on the relevant issue date.
Silver Eminent Group is principally engaged in the production of copper products through Mianyang Zhaofeng Copper Co., Ltd. ("Mianyang Zhaofeng"), its subsidiary established in the PRC. Mianyang Zhaofeng has entered into the Fixed Asset Leasing Agreements with Sichuan Longhua Electronic Equipment Co., in which Mianyang Zhaofeng agreed to lease equipment and factory premises for the production of copper products, such equipment and factory premises under lease are estimated to be sufficient to produce a maximum of 30,000 tons of copper products on an annual basis.
Mr. Yu Jianqiu, Chairman of the Company, said, "Both the Company and Yuanxin are principally engaged in the production of copper products, we expect the acquisition to have immediate synergy effect, enabling us to diversify and strengthen our revenue sources and accelerate our growth and developments in the near future, further enhancing our leading position in the scrap copper industry. At the same time we will continue to strive to maximize the return for our shareholders."
For further information about the acquisition of Silver Eminent Group, please refer to the corresponding announcement at the following link:
http://www.hkexnews.hk/listedco/listconews/SEHK/2017/1215/LTN20171215937.pdf
About Silver Eminent Group
Silver Eminent Group is principally engaged in the production of copper products through Mianyang Zhaofeng, its subsidiary established in the PRC, which is owned as to 95% by China Zhaofeng and 5% by Alpha Universe Group Limited, an indirect wholly-owned subsidiary of the Company.
About China Metal Resources Utilization Limited
China Metal Resources Utilization Limited ("China Metal Resources" or "the Company") (Stock Code: 1636.HK) is a leading manufacturer in scrap copper industry. The Company has a fully integrated value chain with a production and service business model, with business consisting of scrap metal recycling, standard processing and metal deep processing products. By making use of the internet, the Company also provides a comprehensive platform combined with recycle metal information, warehouse logistics and financial services, providing services including recycled metal production, sale and related services. China Metal Resources is mainly involved in the sale of deep processed metal products and scrap metal value chain integrated services, in which deep processing metal includes the processing of recycled scrap copper, scrap aluminium, turning them into different copper and aluminium products such as copper rod, copper bar, copper wire as well as cable, wire and network cable; while scrap metal value chain integrated services include standard metal recovery processing, warehouse logistics, transaction settlement and financial services.
