China’s Henan Yinge to divest loss-making pulp and paper subsidiary to its own parent company
BEIJING, Oct. 27, 2017 (PPI Asia) -China’s Henan Yinge Industrial Investment is moving to sell its 73.81% stake in Sichuan Yinge Bamboo Pulp & Paper to its own controlling shareholder, Luohe Yinge Industrial Group.
The nominal price of the deal for the 146,000 tonne/yr pulp and paper (P&P) concern is only RMB 1 ($0.15).
However, Sichuan Yinge’s debts to its parent firm amounted to RMB 756.81 million as of August 31, and Luohe Yinge has guaranteed that they will be paid off by the end of August 2018 if the takeover goes ahead.
Sichuan Yinge runs its only mill in Luzhou city, in ...