Puda Coal, Inc.,a supplier of metallurgical coking coal used for steel manufacturing in China, has closed an 18% equity transfer agreement with Shanxi Jianhe Coal Industry Ltd. Co.
In May 2009, Puda entered into an equity transfer agreement to acquire 18% of Jianhe Coal. Pursuant to the agreement, the stockholder owning the other 82% of Jianhe Coal guaranteed the company first priority rights to purchase the remaining shares of Jianhe Coal within the 24-month period following execution of the Agreement.
The company said it will be paid proportionate semi-annual dividends based on its 18% ownership. Total dividends for Jianhe Coal will be no less than 80% of its annual net profit.
China-based Puda Coal, through its subsidiaries, supplies metallurgical coking coal used to produce coke for steel manufacturing in China. The company currently possesses 3.5 million metric tons of annual coking coal capacity.
SourcE: Trading Markets
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