Sinochem sells shares of Qinghai Salt Lake for RMB 6.74 bln

Sinochem Corporation, China's largest state-owned fertilizer producer and trader, has agreed to sell 142 million shares of Qinghai Salt Lake Potash Co. Ltd<000792> at the price of RMB 47.49 per share, totaling RMB 6.74 billion, to Sinofert Co. Ltd, announced Sinochem on Tuesday.

The acquisition has been approved by State-owned Assets Supervision and Administration Committee of the State Council. Upon completion of the transfer, Sinofert will become the second largest shareholder of the Qinghai company with 18.49% stakes.

Sinofert Co. Ltd is a wholly-owned subsidiary of the Hong Kong listed company Sinofert Holding Corp<297>, of which Sinochem is the end shareholder. When Sinofert Holding planed for listing, Sinochem has promised not to invest or operate any business, which compete with Sinofert, as well as its subsidiaries. As Qinghai Salt Lake is competing with Sinofert Holding in fertilizer business, Sinochem has decided to sell out all its shares of the company to Sinofert.