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Chiho-Tiande Announces Proposed Acquisition of Entire Share Capital of Scholz Holding GmbH
Significant Move to Extend the Strategic Map
HONG KONG, Aug 30, 2016 - (ACN Newswire) - Chiho-Tiande Group Limited ("Chiho-Tiande" or the "Group") (Stock code: 976), a global leading mixed metal scrap recycler, today announced that Chiho Renewable Development Limited ("CRDL", as purchaser), an indirect wholly-owned subsidiary of the Group, and Mr. O. Scholz, Mr. B-U. Scholz, Scholz Beteiligungsgesellschaft mbH (as sellers) and TBD Vermogensverwaltungs GmbH entered into a Share Purchase Agreement for the acquisition ("Proposed Acquisition") of the entire share capital in Scholz Holding GmbH ("Scholz") at a cash consideration of EUR1.00 (equivalent to approximately HK$8.90).
Pursuant to the Share Purchase Agreement, CRDL will acquire 50,000,000 shares ("Target Shares") in Scholz, representing the entire share capital of Scholz. Upon closing of the Proposed Acquisition, Scholz will become a direct wholly-owned subsidiary of CRDL and an indirect wholly-owned subsidiary of the Group.
As a leading global mixed metal scrap recycler, Scholz is currently significantly over-leveraged, thus its equity value is currently negative. To (a) restructure Scholz's financial situation and balance sheet; (b) facilitate significant deleveraging of Scholz; (c) revitalize the sustainable going concern of Scholz's business; and (d) enable the Group, which is the largest creditor of Scholz (and therefore being able to provide an overall financial restructuring solution to Scholz), to have the opportunity to acquire the Target Shares, the Group has carried out several transactions including acquiring certain debts of Scholz (the "German Debt") and providing Scholz Group a bridging loan, assuming the rights and obligations under the credit agreements from the US lenders on certain subsidiaries of Scholz and entering into the Restructuring Agreement which includes partially releasing the German Debt to prepare for the Proposed Acquisition.
Mr. Tu Jianhua, Chairman of Chiho-Tiande, said, "We are very pleased and excited to announce this Proposed Acquisition. We believe the Proposed Acquisition, when completed, will not only give Chiho-Tiande access to stable upstream material supplies from Europe and the U.S., as well as one of the world's best end-of-life vehicle dismantling and processing technology, but also Scholz Group's technological capabilities and know-how to enhance our recycling operations and boost our clientele. We expect to benefit from the synergies between Chiho-Tiande and Scholz Group, giving us the competitive advantages to perfect our recycling operations and grow profit, and ultimately build Chiho-Tiande into a leading global mixed metal scrap recycling enterprise."
Contact:Strategic Financial Relations Limited
Vicky Lee Tel.: +852 2864 4834 Email : vicky.lee@sprg.com.hk
Cecilia Shum Tel.: +852 2864 4890 Email : cecilia.shum@sprg.com.hk
Hawaii He Tel.: +852 2864 4847 Email : hawaii.he@sprg.com.hk
Fax: +852 2527 1196
Source: Chiho-Tiande Group Limited
Sectors: Metals & Mining, Daily Finance, Daily News
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