HONG KONG -- Lumena Resources Corp., a Cayman Island corporation listed on the Hong Kong Stock Exchange, announced a move towards vertical integration by acquiring up to 95 percent of Sino Polymers New Materials Co. Ltd.
The purchase price is HK$11.05 billion ($1.43 billion), 11.2 times the annualized unaudited net income for the six months ended June 30, according to a Nov. 7 release.Lumena will pay for 90 percent of transaction by issuing new shares and the rest by cash.
Sino Polymer is a Caymen Island-registered holding company. Its Chinese unit Sichuan Deyang Chemical Co. Ltd. — also doing business as Sichuan Deyang Special New Material Co. Ltd -- is China's leading PPS producer.The company operates two plants in Deyang and Chengdu in Sichuan province, with annual capacity of 30,000 tons of PPS resin, 30,000 tons of PPS compounds and 5,000 tons of PPS fiber.
Lumena claims to be the world's second largest thenardite producer, operating four glauberite mines in Sichuan. It reported a net profit of 533 million yuan ($79.8 million) for 2009.Following the completion of the deal, Lumena plans to set up a processing agent to convert its sodium sulfate products into sodium sulfide, which Sino Polymer will use as feedstock to produce PPS.