Aug. 3, 2021 - Puyang Refractories Group Co., Ltd. (hereinafter referred to as the "Company" or "PRCO") plans to establish a refractories production base in Europe to provide overseas customers, especially customers in the European market, with high-quality products and better services, the company announced on last Friday.
Recently PRCO signed the "Equity Purchase Agreement" with Serbia MALBEX WBI DOO Company, Serbia MALBEX ONE Company (hereinafter referred to as the "Subject Company"), and natural person Milan Bjelic (Chairman of the MALBEX WBI DOO Management Committee). The company plans to invest 1.61 million Euros (approximately RMB 12.3 million) to acquire 70% of the equity of MALBEX ONE. After the completion of this acquisition, MALBEX ONE will become the company's holding subsidiary.
MALBEX ONE was established in May 2021. Its main business scope is the production and export of refractories. It is a shell company specially established for this transaction. Currently, MALBEX WBI is in the process of transferring the assets (land, plant and ancillary facilities) within the scope of this transaction to MALBEX ONE.
The company's investment and purchase of assets in Serbia this time, on the one hand, can establish overseas production bases to provide overseas customers, especially customers in the European market, with higher-quality products and services, and improve added value of products through the preferential and convenient tariffs between Serbia and the European Union and Russia; on the other hand, assets such as land and workshops can be acquired through acquisition, laying the foundation for subsequent expansion and construction of production lines, and greatly reducing the investment cycle and risks.
After the completion of the acquisition, the shareholders will make additional investments to expand or build new shaped and unshaped refractories production lines to enhance the company’s product portfolio and market competitiveness in the European market.