Wanhua industrial 1.263 billion euros to buy 96% equity

Yantai Wanhua (600309.　　SH) yesterday announced that the company's controlling shareholder, Wanhua Industrial Group Co., Ltd. (hereinafter called "Wanhua Industry") acquired a 96% per cent stake in the Hungarian Polaroid Chemical Company (BORSODCHEMZRT, hereinafter known as "Polaroid") through its overseas holding subsidiaries in 1.263 billion euros. The announcement said that the existing MDI production capacity of 180,000 tons/year, TDI capacity of 90,000 tons/year and PVC capacity of 400,000 tons/year. In addition, the BAOSDE is under construction of 160,000 tons/year TDI device, the completion rate of the device is about 80%.　　The company's products are mainly for the European market, a small number sold to the Middle East, Africa and Asia and other regions.　　According to the announcement, as at the end of December 2009, the total assets of 1.645 billion euros, total liabilities of 1.473 billion euros, net assets of 172 million euros, net loss of 161 million euros. The announcement that the Wanhua industrial acquisition of the stake in the treasure, will form BAOSDE and Yantai Wanhua competition between the same situation.　　To this end, Wanhua Industrial and Yantai Wanhua on the operation and management of the Po-si agreement. According to the agreement, Wanhua industrial will be entrusted to Yantai Wanhua management operation of the company, but Yantai Wanhua is entrusted to manage the operation during the profit and loss is not responsible for the company's senior management staff will be nominated by Yantai Wanhua.　　In addition, Wanhua industry each year to the Yantai Wanhua pay custody fee of 10 million yuan. The escrow agreement is valid for 3 years.　　In the 18 months after the remarkable improvement in the operation of the company, Yantai Wanhua has the right to request Wanhua industry to put forward a proposal to solve the merger of the company and Yantai Wanhua business in a suitable way.　　It is announced that the acquisition project has been approved by the National Development and Reform Commission and the Ministry of Commerce. Yantai Wanhua yesterday closed at 20.18 Yuan, up 1.05%.