STOCKS | Chuangye Group Holdings To Buy 70% Of Anhui Feidian Environmental For RMB12.775 Million

Chuangye Group Holdings (02221) said it will acquire a 70% stake in Anhui Feidian Environmental Technology for RMB12.775 million, or about HK$14.895 million, by issuing about 14.895 million new shares at HK$1 each, according to ETNet. The issue price represents a 78.51% premium to the stock's close of HK$0.56 on the previous day. The new shares will account for about 6.1% of the enlarged share capital. The three sellers hold 1.74%, 1.74% and 2.61% stakes, respectively. Anhui Feidian Environmental Technology is engaged in the collection, processing and trading of waste oil. It holds 51% of a mainland subsidiary established in July, which will also collect, process and trade waste oil in China. Anhui Feidian posted a profit of RMB566,000 last year. Chuangye Group Holdings said the acquisition could expand access to upstream waste oil resources and create synergies with its existing environmental business in project development, operations management and resource allocation.