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Gpro Titanium to acquire Guxiandao PDD
Posted on Tuesday, 12 June 2018 13:38
Gpro Titanium is acquiring Zhejiang Guxiandao Polyester Dope Dyed Yarn (Guxiandao PDD) from Zhejiang Guxiandao Industrial for CNY 5.60 billion (USD 874.57 million) to cement its leadership in industrial polyester filament.
Minsheng Securities, C&T Partners and BDO International are advising on the deal that will be carried out in two stages to avoid changes to the titanium dioxide maker’s ownership, and to lock in target assets in advance.
Naning GPRO Eastern Investment, a subsidiary of Gpro Titanium’s controlling shareholder will first acquire 51.0 per cent of Guxiandao PDD from Zhejiang Guxiandao New Materials for a cash sum.
Following this transfer, the listed titanium dioxide maker will buy this stake, and the 49.0 per cent balance, in an all-scrip deal valued at CNY 5.60 billion.
Guxiandao PDD specialises in the production of modified polyester chips and differentiated polyester industrial fibre filaments, all of which can be used in the automotive, construction engineering and sports industries, among others.
According to its website, the company exports to 50 countries and regions, including the US, Canada, Germany and Saudi Arabia, while increasing its share at home to 25.0 per cent of the polyester industrial filament market.
Gpro Titanium is one of the largest titanium dioxide manufacturers in China, and its products are widely used in coatings, paper, ink, rubber, leather and cosmetics, among other things.
Earlier this year, Hengli Petrochemical announced it had designs to fully acquire Guxiandao PDD for as much as CNY 6.00 billion, as well as investing in an ethylene project to extend operations along the refining-petrochemical value chain.
However, by April the refiner pulled the proposal amid failure to reach an agreement on the main terms of a deal.
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