Chiho-Tiande, a Hong Kong-based scrap metal company, has announced that its shareholders have overwhelming approved the acquisition of Scholz Group, a German recycling company that has been struggling with fiscal problems over the past several years.
During an extraordinary general meeting, held 15 December 2016, Chiho-Tiande shareholders approved the deal, first announced earlier this year, to acquire Scholz for a total of €1. Chiho-Tiande had loaned Scholz a significant amount of capital to keep the German company afloat as Scholz struggled with being overleveraged. The debt caused the German company to have a negative equity value.
When Chiho-Tiande first announced plans to acquire Scholz in late August, 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.”
With the purchase, Scholz will become an indirect wholly owned subsidiary of the Chiho-Tiande.
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