China Molybdenum Co, China's second-biggest molybdenum producer, announced yesterday that it has agreed to sell a 50% stake in wholly-owned subsidiary Luoyang High Tech Molybdenum & Tungsten Materials to Molymet Corp, a U.S.-based company mainly engaged in the production and sale of molybdenum products and related by-products.
The Hong Kong-listed company said in statement that the purchase price will be around 50% of the appraised value of Luoyang High Tech, which will not exceed RMB 500 million.
The buyer will settle the deal by means of a one-off cash payment, according to the statement.
China Molybdenum said that the sale of the stake in Luoyang High Tech will convert the subsidiary into a Sino-U.S. joint venture with a focus on the production and sale of molybdenum metal products. Luoyang High Tech will benefit from Molymet's strengths in technology, marketing and management, which will improve its product quality, market share and management standards.
Luoyang High Tech's business includes the production of molybdenum powder, tungsten powder and related products.
Source: China Knowledge
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