Flat Glass Group Co.Ltd(601865) (601865) announced on February 13 that the company plans to purchase 100% equity of Anhui Dahua Oriental Mining Co., Ltd. and Anhui Sanli Mining Co., Ltd. held by Anhui fengsha Mining Group Co., Ltd. by paying cash and assuming debt, and the final transaction price is determined to be 3.344 billion yuan.
On October 27, 2021, Flat Glass Group Co.Ltd(601865) disclosed the major asset restructuring plan, and planned to purchase 100% equity of Dahua mining and 100% equity of Sanli mining at a total price of no more than 3.65 billion yuan. With the reduction of the final transaction price, this transaction will no longer constitute a major asset restructuring. This transaction has been deliberated and approved by the board of directors and the board of supervisors of the company and does not need to be submitted to the general meeting of shareholders for deliberation. Flat Glass Group Co.Ltd(601865) said in the announcement that the acquisition will help the company improve the reserves of quartzite resources for glass and reduce the impact of fluctuations in quartz sand raw materials on the company’s product costs and performance.
Dahua mining is located in Fengyang County, Anhui Province. The approved production scale is 500000 tons / year, and the simulation change of production schedule after the period is 2.6 million tons / year. Sanli mining is also located in Fengyang County, Anhui Province. The approved production scale is 1.9 million tons / year, and the production schedule is simulated to be changed to 4 million tons / year after the period.
The total price of this transaction is 3.344 billion yuan, including 2.805 billion yuan of equity transfer price paid for the transfer of the underlying equity and 539 million yuan of debt owed by the underlying company to the counterparty fengsha group. After the completion of this transaction, Dahua mining and Sanli mining will become wholly-owned subsidiaries of the company, and the company will directly hold 100% equity of Dahua mining and 100% equity of Sanli mining.
Flat Glass Group Co.Ltd(601865) said in the announcement that with the rapid expansion of the company’s photovoltaic glass production capacity, the use of quartz sand for photovoltaic glass also increased rapidly. With the further expansion of the company’s photovoltaic glass production capacity in the future, the company’s own quartzite mine can no longer guarantee the sand demand of the company’s production base. The company urgently needs to obtain rich quartzite ore resource reserves, improve the self-sufficiency rate of quartz sand in the production base, obtain a continuous and stable supply of quartz sand, and reduce the company’s dependence on external purchase of quartz sand. After the completion of this transaction, the target company will become a wholly-owned subsidiary within the scope of the consolidated statements of the listed company. The company will have a stable supply of quartzite ore for glass, which is conducive to controlling and stabilizing the quality and price of main raw materials. At the same time, the quartzite mines of Dahua mining and Sanli mining are located in Fengyang with Anfu glass, the main production subsidiary of the listed company. Local mining and processing reduce the transportation cost, which is conducive to the company to further control the production cost and improve the overall competitive advantage and profitability of the listed company.
