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Blackgold International Holdings Limited (ASX:BGG) says it has sold its Hong Kong subsidiary to Matex International for $475 million. Blackgold Holdings Hong Kong holds all of the company’s assets excluding cash.
 

Blackgold International is a China-based producer of thermal coal to industrial power producers in Shanghai. The company assets include four underground thermal coal mines in inland China and is the country’s largest non-state owned producer.  
 

As China’s manufacturing enterprises shift from coastal regions to inland areas the demand for coal has risen higher than supply which gives Blackgold a geographical benefit. 
 

The deal will constitute a reverse takeover on the Singapore stock exchange and result in a disposal of the ASX listing.  
 

Blackgold International Holdings Limited (ASX:BGG) produced a net profit of $21 million for the half year ended 30th April 2014.