DEERFIELD BEACH, Fla.
Oct. 10, 2012
/PRNewswire/ -- CD International Enterprises, Inc. ("CD International") (OTCQB:
), a U.S. based company that produces, sources, and distributes industrial commodities in
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
. The sale of CDI Beijing will enable us to focus our operations in
solely on its magnesium production and distribution operations.
CD International acquired its stake in CDI Beijing in 2008 for approximately
. Under the terms of the
October 8, 2012
Equity Transfer Agreement, Mr.
, Vice President and a minority owner of CDI Beijing, acquired our 51% interest in CDI Beijing. The purchase price of
, comprised of cash and other consideration, is payable in five installments over a four year period from
September 30, 2012
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
for the first nine months of fiscal 2012 and we anticipate this disposition will result in a negligible loss.
Commenting on the sale, Dr.
, 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
on our magnesium segment. We believe that magnesium production and distribution as a pure play in
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
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.