The Hong Kong-based scrap recycling firm Chiho-Tiande Group Ltd. has announced the creation of new shares that have been purchased by an investment group based in Chongqing, China.
From January 2012 until February 2015, Sims Metal Management Ltd. [SMM ] owned a partial stake in Chiho-Tiande. However, in late January 2015 SMM announced that it was selling its shares and reportedly completed that transaction the following month.
In a late March 2015 announcement, Chiho-Tiande said it had “agreed to place 456.9 million new shares at HK$9.01 per share (US$1.16) to USUM Investment Group Hong Kong Limited,” which is affiliated with Chongqing, China-based USUM Investment. The number of shares purchased by USUM represents a 30.3 percent stake in Chiho-Tiande.
The estimated net proceeds of about HK$4.1 billion (US$530 million) of the stock issued “will be used to finance acquisitions of businesses or assets in order to further strengthen its principal business of metal recycling,” says Chiho-Tiande in its late March press release. The company says it is “actively looking for suitable acquisition opportunities within the metal recycling sector in mature overseas markets.”
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