On the evening of September 15th, Nanfeng Chemical Group Co., Ltd. (stock abbreviation "ST Nanfeng") issued an announcement stating that the company is planning asset replacement, issuance of shares and payment of cash to purchase assets, and the stock will be suspended on September 16. Nanfeng Chemical will acquire a controlling stake in Northern Copper from Zhongtiaoshan Nonferrous Metals Group, etc., and at the same time purchase the company's original business and raise supporting funds. This means that Zhongtiaoshan Nonferrous will realize a backdoor listing through Nanfeng Chemical.
According to the announcement disclosure plan, Nanfeng Chemical intends to replace its original main business as the equivalent part of the purchased assets and the 79.39% equity of Northern Copper held by Zhongtiaoshan Group, and issue shares and pay cash. Pay Zhongtiaoshan Group the difference between the purchased assets and the 79.39% equity of Northern Copper; at the same time, the controlling shareholder Shanjiao Salt Chemical Group intends to transfer 25.69% of the shares of the listed company held by Zhongtiaoshan Group to Zhongtiaoshan Group. It is agreed that the acquired assets acquired through asset replacement will be undertaken by Shanjiao Salt Chemical or its designated third party as the transaction consideration for Zhongtiaoshan Group’s transfer of the above-mentioned company’s equity, and the difference will be made up in cash.
Nanfeng Chemical Group Co., Ltd. was established in April 1996. It is a large-scale enterprise group and a state-controlled listed company that spans provinces and cities. The controlling shareholder is Shanxi Coking Coal Yuncheng Salt Chemical Group Co., Ltd., and the actual controller is Shanxi Coking Coal Group.
Nanfeng Chemical owns the Yuncheng salt pond, the world's third largest sodium sulfate salt pond, and underground mirabilite resources in Hongze, Jiangsu and Meishan, Sichuan. Its inorganic salt products include sodium sulfate, sodium sulfide, barium sulfate, and magnesium sulfate. The sodium sulfate produced is not only supplied to other daily chemical giants, but also has its own well-known Chinese washing brand "Qiqiang". However, in recent years, Nanfeng Chemical has been STD due to poor management.
The controlling shareholder of Northern Copper, Zhongtiaoshan Nonferrous Metals Group, formerly known as Zhongtiaoshan Nonferrous Metals Company, is headquartered in Yuanqu County, Yuncheng City, Shanxi Province. It is mainly engaged in copper mining, beneficiation and smelting. The main products are copper cathodes and sulfuric acid. With an annual production capacity of 4 million tons of mines, 100,000 tons of cathode copper, and 260,000 tons of sulfuric acid, it is the largest copper conglomerate in North China. It used to belong to the old Nonferrous Corporation and was placed under the management of Shanxi Province in 2000.
In 2002, Zhongtiaoshan Group and Beijing Mining and Metallurgical Research Institute and other five units jointly initiated the establishment of Northern Copper, including Zhongtiaoshan Group’s core copper sector assets, including Tongkuangyu Copper Mine and Yuanqu Smelting Plant Three production branches including Shanghai Zhongtiaoshan Non-ferrous Metal Co., Ltd., Taiyuan Zhongtiaoshan Non-ferrous Metal Co., Ltd., and Houma North Copper Co., Ltd. have three production branches, including more than 5,000 employees.
The core asset, Tongkuangyu Copper Mine, has an annual processing capacity of 4 million tons. It is the first mine in China to incorporate natural caving mining technology. At the end of 2002, a hydrometallurgical plant with an annual output of 2,000 tons of electrowinning copper was built and became a hydrometallurgical plant in China. A standard demonstration plant in the field; Houma North Copper Copper Co., Ltd. took the lead in introducing the world’s advanced Ausmelt copper smelting technology, and carried out more than 300 transformations and innovations in production practices, forming a "copper" with independent intellectual property rights. New top-blowing smelting and blowing process" won the first prize of 2007 China's non-ferrous metal industry scientific and technological progress.
Northern Copper has been seeking to go public for many years, but the IPO is not going well. The backdoor listing, driven by the joint actual controller Shanxi State-owned Capital Operation Co., Ltd., will add another copper investment target for A shares.
