Australia New Agribusiness & Chemical Group focuses on compound fertiliser manufacturing business
Tuesday, July 23, 2013 by Proactive Investors
Australia New Agribusiness & Chemical Group focuses on compound fertiliser manufacturing business
Australia New Agribusiness & Chemical Group (ASX:ANB), formerly Daton Group has disposed of a 49 per cent equity in unlisted U&D Mining Industry (Australia) Pty Ltd for a total of $29 million to focus on its Australia agricultural fertiliser business.
U&D is an investment company involved in coal and sourcing of coal products and related products in Australia.
Consideration for the sale of a 25 per cent interest to China Kunlun International Holding Limited is a hefty $14,800,000 with no due diligence outstanding nor financing or other conditions.
The other 24 per cent interest in U&D will be bought by Golden Globe Energy Limited for a tidy $14,652,000.
A deposit of $4 million will be paid by Kunlun and Golden Globe each within 20 business days of the signing date of the agreement.
Earlier, the company had previously reduced its equity interest in U&D from 60% to 49% through a disposal of 11% of its shareholding to Kunqian/Yima.
Australia New Agribusiness & Chemical Group aims to commence the production of compound fertiliser manufacturing business later this year, profit from the sale of the mining interest will assist the cause.
Progress
The company's main business is producing coal based urea, methanol and recycled carbon dioxide.
To date, Daton Group had invested $31 million to establish two subsidiaries-U & D Mining Industry (Australia) Pty Ltd and Apollo Fertiliser Queensland Pty as part of the growth strategies to Australia.
Through Apollo Fertiliser, the company is building a compound fertiliser plant to market to the Australian market.
