Hunan Tianrun to Buy Tobacco Fertilizer Business     

Hunan Tianrun Chemical Industry Developing Co., Ltd. (SZ: 002113) said on September 28th that it plans to buy a 64.74% stake in Hunan Jinye Fertilizer Co from the State-owned Assets Supervision Co., Ltd. of the Yueyang government (SASC Yueyang).
   Earlier, SASC Yueyang acquired an 82.74% stake in Jinye Fertilizer from nine companies including China National Tobacco Corporation Hunan Branch.
   Jinye Fertilizer engages in the manufacture of tobacco fertilizers, and supplies to China National Tobacco Corporation Hunan Branch.
   Jinye Fertilizer's audited net asset totaled RMB118.1 million as of August 31st, 2009. The stake sought by Hunan Tianrun is estimated to worth more than RMB80.18 million.
   Hunan Tianrun said it expects the acquisition could help it expand in the specialty fertilizer filed, and boost its competitiveness in the overall fertilizer market. In addition, the company's market coverage would be expanded to all of Hunan. The company expects sales to grow fast, with higher profitability after the transaction.
   Jinye Fertilizer had core business revenue of RMB186.26 million, and net profit of RMB9.43 million in the first half of 2009.
   Hunan Tianrun, based in Yueyang, Hunan province, owns a 240 000 t/a urea production plant. The company also produces liquid ammonia, methanol and compound fertilizers.