DEERFIELD BEACH, Fla., Oct. 10, 2012 /PRNewswire/ -- CD International Enterprises, Inc. ("CD International") (OTCQB: CDII), a U.S. based company that produces, sources, and distributes industrial commodities in China and the Americas and provides business and financial corporate consulting services, announced today the sale of our 51% interest in CDI Beijing International Trading Co., Ltd., a PRC company ("CDI Beijing") pursuant to the terms of an Equity Transfer Agreement for approximately $1.6 million. The sale of CDI Beijing will enable us to focus our operations in China solely on its magnesium production and distribution operations.
CD International acquired its stake in CDI Beijing in 2008 for approximately $1.5 million. Under the terms of the October 8, 2012 Equity Transfer Agreement, Mr. Huijuan Chen, Vice President and a minority owner of CDI Beijing, acquired our 51% interest in CDI Beijing. The purchase price of $1.6 million, comprised of cash and other consideration, is payable in five installments over a four year period from September 30, 2012 to September 30, 2016, with 9% per annum interest accruing on the residual payments beginning on October 1, 2012 and payable on the final installment. The Equity Transfer Agreement and a further description of that agreement is contained in our October 9, 2012 Form 8-K filed with the Securities and Exchange Commission. CDI Beijing recorded revenue of less than $1 million for the first nine months of fiscal 2012 and we anticipate this disposition will result in a negligible loss.
Commenting on the sale, Dr. James Wang, Chairman and CEO of CD International, stated, "We are pleased to complete the sale of CDI Beijing which will allow us to focus all of our operational efforts in China on our magnesium segment. We believe that magnesium production and distribution as a pure play in China will be a much more valuable asset to our company in the future as we look to solidify a leading position in this industry. We intend to continue on our geographic diversification plan by building our commodities distribution operations South America and focusing our U.S. based efforts on corporate management and consulting. We believe that by effectively growing these clearly defined operations, we can maximize the value of our operations in a number of strategic ways for the benefit of our company and its stockholders."
About CD International Enterprises, Inc.
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