Large shareholder 1.26 billion euros to buy peer entrusted management of Yantai Wanhua

Yantai Wanhua (600309) today, the company received the notice of the holding shareholder Wanhua Industrial Group Co., Ltd., Wanhua industrial through the overseas holding subsidiaries to buy Hungarian Borsodchem company (hereinafter said: BC Company) 96% of the equity, has been approved by the National Development and Reform Commission, And in the European Hungarian Budapest time January 31, 2011 signed the final agreement on the sale of shares. Since then, Wanhua industry has become the actual control of BC company, the indirect control of BC company 96% of the equity.　　The total amount of the deal is € 1.263 billion. The announcement revealed that BC company is located in Hungary, Europe, most of the production facilities are concentrated in the Hungarian city of Kasinzbacka, the existing MDI production capacity of 180,000 tons/year, TDI production capacity of 90,000 tons/year and PVC capacity of 400,000 tons/year; In addition, BC company under construction 160,000 tons/year TDI device, The completion rate of the device is about 80%. At present, the BC Company's products are mainly for the European market, a small number of products sold in the Middle East, Africa and Asia and other regions.　　By the end of December 2009, BC company assets amounted to 1.645 billion euros, liabilities amounted to 1.473 billion euros, net assets of 172 million euros, net profit-161 million euros. Bulletin, Isocyanate (MDI) is a globalized industry, the world's major consumer areas for Europe, China, the Americas, the current MDI industry ranked top companies, whether sales channels or manufacturing base are global layout, and formed a strong regional balance ability, and Wanhua industry currently only in mainland China has isocyanate (MDI) Production devices. Wanhua industry to do strong, in the world's largest isocyanate consumer zone in Europe has isocyanate manufacturing base is the inevitable choice in the development process.　　BC Company in 2008 after the global financial crisis unbearable high debt burden, deteriorating financial situation, the first half of 2009 BC company into financial difficulties, corporate valuation significantly reduced for Wanhua industrial mergers and acquisitions in the way the acquisition of BC company, in Europe has a manufacturing base provides a rare opportunity. However, because Wanhua industrial as the holding shareholder of Yantai Wanhua, in Yantai Wanhua listed at the beginning of the competition to prohibit the commitment, and the Wanhua Industrial acquisition BC company, will form BC Company and Yantai Wanhua exists in the competition between the situation.　　To this end, Wanhua industry and Yantai Wanhua on the BC company's operation and management reached a consensus agreement. The agreement stipulates that Wanhua industrial completed the acquisition of BC company, will entrust the Yantai Wanhua to the BC Company for management operations. Yantai Wanhua is not responsible for the profit and loss of BC company entrusted to manage the operation period. At the same time, in order to ensure that Yantai Wanhua to the BC company custody during the management of the rights, during the hosting BC Company's senior management staff by the Yantai Wanhua is responsible for nomination. Wanhua Industrial to Yantai Wanhua annual payment of custody fee of 10 million yuan. The agreement also agreed that, in the BC Company's operating conditions significantly improved after 18 months, Yantai Wanhua has the right to request Wanhua Industrial proposed in a proper way to solve BC company and YantaiWanhua Business merger of the motion; at the same time, Wanhua industrial commitment will be put forward to the appropriate way to resolve and Yantai Wanhua business merger of the bill.　　The agreement is valid for three years. Yantai Wanhua announced at the end of last year that its holding subsidiary, Ningbo Wanhua, two-phase MDI project officially put into production, production capacity of 300,000 tons. As the MDI project cycle is typically 3 years old, and other competitors such as BASF and Bayer's expansion plans are not implemented, this may be the next three years in the global MDI industry only the growth of capacity. According to the forecast, the Ningbo Company's capacity in 2012 all released, Yantai Wanhua MDI total output will reach 800,000 tons per year, its capacity of the global rankings will rise to the top three. And once BC Company's assets into listed companies, Yantai Wanhua in the global MDI market position will be further enhanced.