Origin Agritech to acquire 52.21% controlling stake in Denong for $5 million
Origin Agritech agreed on January 17, 2006 to buy a 52.21% controlling interest in Denong Zhengcheng Seed Company for $5 million in cash. Closing depends only on government approvals, which the company expects within 30 days, and management said the deal will not change its prior guidance for the year ending June 30, 2006.
- Agreement dated January 17, 2006 for a 52.21% interest in Denong for $5 million cash
- Denong 2004 revenue was RMB213 million ($26.3 million), up from RMB169 million ($20.8 million) in 2003
- Company says guidance is unchanged at $11 million earnings on $55 million projected revenue for the year ending June 30, 2006
- Closing is contingent only on government registration procedures, expected within 30 days