Spur acquires fertilizer business of Hebei Tianren Chemical Corporation of China

04-Jul-2005

Spur Ventures Inc. announced in Beijing, China that it has signed a binding agreement to acquire the fertilizer related businesses of Hebei Tianren Chemical Corporation ("Tianren"), a shareholding Chinese company and to merge the management teams and assets of both to create the fastest growing fertilizer group in China.

Assets to be acquired include: a 51% interest in Xinjiang Tianren Chemicals Ltd., a 75% interest in Tianding Chemical Company, a 80% direct interest in Tianren Agriculture Franchise Company and a 60% interest in Hubei Yichang Tianlong Industry Company. The aggregate audited revenue and EBITDA for the above businesses, based on audited financial statements provided by Tianren, were $USD 88.6 million and $USD 3.7 million respectively for 2004. Based on discussions with Tianren management, revenues in 2005 are expected to increase by 30% over 2004 reflecting the fact that 2005 will be the first full year of sales operation of the marketing company. Under the agreement, Spur will assume bank debt of these businesses of $USD 3.4 M as of the end of the first quarter of 2005.

The transaction was negotiated at arm's length and is subject to due diligence, TSX Venture Exchange and all other regulatory approvals, and standard closing conditions. Mr. Wu Sihai, a fertilizer industry leader in China and Mr. Zhai Jidong, a senior executive in Tianren, will be invited to join the Spur Board of Directors at Closing.

https://www.chemeurope.com/en/news/47365/spur-acquires-fertilizer-business-of-hebei-tianren-chemical-corporation-of-china.html