Hong Kong-based Titan Petrochemicals has reached an agreement to buy the entire issued share capital in the Gold Dragon Enterprise Development, a company which holds full equity in a shipbuilding unit.
Under the sale and purchase agreement, signed with Sino Team Investment Development on October 6, the parties agreed a price of HKD 20 million (USD 2.6 million) in cash and 791.6 million consideration shares for the company.
Gold Dragon indirectly holds 100% equity in Oriental Precision & Engineering (OPCO), which operates a shipyard situated in Nantong City, Jiangsu Province.
Once the transaction is finalized, the new company, along with its subsidiaries, will become an indirect subsidiary of Titan Petrochemicals and their financial position and operating results will be consolidated into the company’s consolidated financial statements.
Titan Petrochemicals is to pay a deposit of HKD 20 million to Sino Team Investment for the shares within ten days from the date of the sale and purchase agreement. The company informed that the transaction is expected to be completed by late October 2017.