PVTIME – On February 13, Flat Glass Group CO.,LTD. (6865.HK) released an announcement on Equity Transfer Agreement signed with Fengsha Mining.
According to the announcement, Flat Glass agreed to acquire the enire equity interest of the Sanli Mining and Dahua Dongfang Mining as the Target Companies from Fengsha Mining for a total of no more than 3.65 billion yuan. And as amended by the Supplemental Agreement, the final amount was 3,343,947,600 yuan.
The target company Dahua Mining owns a mining right of glass quartzite mine, which is located in Fucheng Town, Fengyang County, Anhui Province. The mining method is open-pit mining, and the validity period is from March 12, 2020 to March 12, 2050. Another target company Sanli Mining owns a mining right of glass quartzite mine as well, which is located in Fucheng Town, Fengyang County, Anhui Province. The mining method is open-pit mining, and the validity period is from December 26, 2016 to December 26, 2028.
Flat Glass stated that quartz sand is one of the most important raw materials for the company’s production of photovoltaic glass and float glass, and the demand for it is increasing with the continuous expansion of the company’s production and sales scale. The acquisition of Sanli Mining and Dahua Dongfang Mining is expected to meet its demand for quartz sand, and reduce the impact of the possible increase of raw materials prices. Therefore, the acquisition will be positive for the company’s overall development strategy and in the interests of the company and all shareholders.