Zhejiang Glass raises stake in soda ash subsidiary

Zhejiang Glass Co Ltd said it has acquired an additional 2.737% of its subsidiary Qinghai Soda Ash for CNY 150 million, after minority shareholders refused to make their pro-rata capital contribution …

Zhejiang Glass Co Ltd said it has acquired an additional 2.737% of its subsidiary Qinghai Soda Ash for CNY 150 million, after minority shareholders refused to make their pro-rata capital contribution to the soda ash producer. Zhejiang has raised its stake in Qinghai to 92.737% from 90% following the acquisition. On 10 August 2005, Zhejiang and the minority shareholders agreed to increase Qinghai Soda“s registered capital by CNY 166.67 million to CNY 564.73 million, with the increase to be paid for on a pro-rata basis by Zhejiang and minority shareholders. Zhejiang said it paid its share, or CNY 150 million, in September 2005. However, Zhejiang said the minority shareholders informed it on 18 November 2005 that they had decided not to make their pro-rata capital contribution in Qinghai Soda Ash for financial and personal reasons. As a result, Zhejiang“s CNY 150 million injection in Qinghai has become an acquisition of an additional 2.737% stake in the company, the company said in a statement. Qinghai Soda, which was founded in July 2003, is principally engaged in the manufacture and sale of soda ash in China. Zhejiang said it decided to venture into the production of soda ash in 2003 in order to control the rising costs of one of its main raw materials.