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APP Offered Takeover Bid to Bohui Paper

SCI99

2020-04-13

导读：APP Offered Takeover Bid to Bohui PaperOn April 6, Boh

APP Offered Takeover Bid to Bohui Paper

On April 6, Bohui Paper published an announcement stating that the company has received a takeover bid from Sinar Mas APP (China) Investment Co. The Anti-Monopoly Bureau under the State Administration for Market Regulation has accepted the anti-monopoly scrutiny application from APP. According to the relevant laws and regulations in China, the takeover bid still requires authentication from authorities such as the State Administration for Market Regulation to become effective. Currently, the application is still pending.

On January 6, 2020, the actual controllers of Bohui Paper, Mr. Yang Yanliang and his spouse Ms. Li Xiurong, had inked an equity transfer agreement with APP, intending to transfer 100% of the equity of Shandong Bohui Group.

In 2019, APP had acquired 20% of Bohui Paper Industry’s equity through its sole subsidiary, Ningbo Asia Paper Tube & Carton Box Company. In addition to the 28.84% share from the acquisition of Bohui Group, APP will surpass the 30% threshold, triggering the takeover bid.

APP states that the aim of this takeover bid is not to delist Bohui Paper Industry.

After the equity transfer takes place, the proportion of Sinar Mas-APP will reach 59% in the ivory board industry. After the ivory board capacity at Guangxi Jingui Pulp & Paper (an AAP subsidiary) becomes operational in 2021, its proportion will reach 66%. Thus, Sinar Mas-APP will establish an unshakable leader present in the ivory board market. In the short term, the profit and stable production within the industry of high market concentration degree will secure the steady consumption of pulp resources.

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