TORONTO, Jan. 8, 2013 /CNW/ - Asia Bio-Chem Group Corp. (TSX: ABC) ("Asia Bio-Chem" or the "Company") is pleased to announce that it has successfully completed the acquisition of all the issued and outstanding shares of Tieling Wanshunda Starch Company Ltd. ("Tieling") a wholly foreign owned enterprise ("WFOE") under the laws of the PRC (The "Acquisition").
"The acquisition of Tieling represents an opportunity to grow the company's annual corn processing capacity from current 0.9 million tons to 1.5 million tons at an extremely attractive price" stated Mr. Zhiping Wang, President and CEO of Asia Bio-Chem.
Under the terms of the Acquisition (available on SEDAR), the purchase price of Chinese Yuan (CNY) 280 million (Canadian $44.8 million) will be satisfied as follows:
- CNY 250 million ( $40 million) in the form of account receivables of Asia Bio-Chem, and
- CNY 30 million ( $4.8 million) note payable 12 months after the completion of all title changes and filing approval with the local government.
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