According to Zhitong Finance App, Yuntu Holdings (002539.SZ) announced that Yingcheng Chemical Company, a wholly-owned subsidiary of the company, plans to jointly invest with Zangge International, a wholly-owned subsidiary of Zangge Mining, to establish a joint resources company in Singapore with a registered capital of 1 US dollar, of which Yingcheng Chemical Company holds 25% of the shares and Zangge International holds 75% of the shares. After the establishment of United Resources, it is planned to acquire 92% of Kanga Potash (“KP Company”) for US$171 million (equivalent to approximately RMB 1,157 million, excluding transaction taxes and fees). Yingcheng Chemical Company's total investment amount corresponding to 25% shareholding ratio is US$42.7616 million (equivalent to approximately RMB 289 million). After the transaction is completed, Yingcheng Chemical Company will hold 25% of United Resources Company's shares, and United Resources will hold 92% of KP's shares.
KP's core assets are Kanga potash mining rights and Loango potash exploration rights located in the Republic of the Congo (“Congo (Brazzaville)”). The company's participation in the Democratic Republic of the Congo (Brazzaville) potash project investment is an important strategic layout for the company based on the main compound fertilizer business and expanding into the upstream potash fertilizer raw material field. By participating in KP, the company will increase its potash resource reserves, make up for shortcomings in the layout of upstream potash resources, strengthen its ability to guarantee potash fertilizer raw materials, and provide resource support for the long-term development of the company's compound fertilizer.