Ch Agri-Prod Ex woos CITIC AMC to develop pawn loan business

    China Agri-Products Exchange (00149) it agreed to acquire the right and power to control over and the right to enjoy the economic benefits in the pawn loan business operated by CITIC XinBang Asset Management Corporation Ltd through a series of contracts at HK$3,117 million from vendors including CITIC Asset Management Corporation Ltd (CITIC AMC).
  The consideration will be satisfied by the allotment and issue of about 2,309 million consideration shares at the issue price of HK$1.35 per share, representing a premium of about 5.47% over the closing price of HK$1.28.
  The acquisition constitutes a reverse takeover for China Agri-Products Exchange, which will be treated as if it were a new listing applicant. The acquisition is therefore also subject to the approval by the Listing Committee of a new listing application to be made by China Agri-Products Exchange.
  The target group has been principally engaged in pawn loan business in the PRC since the acquisition of its first pawn shop in 2008. It is expected that the introduction of CITIC AMC as a controlling shareholder upon completion will not only broaden the company's shareholding base, but also create opportunities for cooperation with CITIC AMC in financial sectors and other new sectors to be explored in the future.
  China Agri-Products Exchange also agreed to allot and issue an aggregate of 114 million new shares at HK$1.35 per share to Oriental Gold Converge Limited, Beijing Kaiweiming Investment Consulting Co. Ltd. and Shenzhen Heruikang Investment Development Co. Ltd., representing about 2.37% of the enlarged issued share capital of China Agri-Products Exchange. The estimated net proceeds of about HK$119 million will be used as to about HK$107.1 million to strengthen the company's capital base and expand its pawn loan business; and about HK$11.9 million for other general corporate purposes, including operating costs and expenses such as rental and salary expenses.