Chiaki to establish a joint venture with the French Limagrain

Chiaki Hi-Tech (000998.　　SZ) yesterday announced that the company January 27 with the world's fourth largest group of companies in France Limagrain Group signed the establishment of a joint venture company framework Agreement. The announcement said that according to the framework agreement signed by Vilmorinhongkonglimited (VHK), a holding company with 72% per cent of the Limagrain group, the two sides would invest in RMB 200 million to set up joint ventures in China, Vilmorin&cie To engage in the research, production and marketing of hybrid maize seeds, wheat seeds, and oil crops.　　Vilmorin&cie Group is mainly engaged in field crop seed and vegetable seed management, its stock is traded on the Paris stock exchange of France, is one of the world's largest seed industry group.　　Among them, Chiaki Tech will contribute 120 million yuan, accounting for the joint venture company registered capital of 60%;VHK or Vilmorin&cie group designated other entities to invest 80 million yuan, accounting for the proportion of registered capital of the joint venture company 40%.　　At the same time, the announcement said, in order to attract excellent seed industry research and Development, the company will be established after the joint venture company will hold a 5% stake in the joint venture company management. The announcement also said that the joint venture will be able to use the Vilmorin&cie group's hybrid maize inbred lines exclusively after its establishment. The Vilmorin&cie group will license the JV company to use its technology. In the future, the Vilmorin&cie group will transfer to the JV company all its work on the testing in China, the cultivation of hybrid maize and the development of such hybrid maize, including the production of parent seeds, and the transfer of the personnel involved to the joint venture.　　Future companies will also transfer corn assets and businesses to the joint venture in Gansu Province. The joint venture was established to make full use of the advantages of Lima's Grand Group to promote the development of the company's corn seed industries, Chiaki said.　　At present, the investment subject to the approval of the relevant State departments can be implemented. Chiaki Tech also announced that received the company's largest shareholder Changsha new Daxin Agricultural Priority Company (hereinafter referred to as "new Daxin") notice that the new da Xin holding shareholder Hunan New Daxin Co., Ltd. and the new large shareholder VHK signed an Equity transfer agreement, will be VHK held by all the new Daxin stake,　　The proportion of new daxin shares is 46.5%. The agreement is pending approval by the relevant State authorities, the bulletin said. After the transfer of the stock right, new daxin shares will become the sole shareholder of new Daxin.　　The equity transfer has no effect on the shareholding structure of new daxin shares, nor will it lead to the transfer of Chiaki's actual control. Chiaki Hi-Tech because of the need to disclose the major issues, the company's shares since February 9 suspension, February 1 before the suspension, the company's shares closed to 27.89 yuan, up 3.64% from the previous session.