Update on Change in Majority Shareholders of Asia Bio-Chem
TORONTO, March 7, 2014 /CNW/ - Asia Bio-Chem Group Corp. (TSX: ABC) ("Asia Bio-Chem" as the "Company") announces further to its prior press release dated February 17, 2014 that it has been advised by it's controlling shareholders that a letter of intent ("LOI") has been completed which contemplates the sale of their shares of Asia Bio-Chem to a subsidiary of the Chinese state-owned Beidahuang State Farm Group General Corp. ("State Farm").
Under the terms of the LOI, the Chairman and CEO, Zhiping Wang, together with another significant shareholder, Yong Chin Wang (together, the "Controlling Shareholders") intend to sell their interest in Asia Bio-Chem to a subsidiary of the State Farm. The Controlling Shareholders then intend to invest the proceeds of the sale back into the subsidiary of State Farm and become shareholders of the State Farm subsidiary. It is expected that this sale will take place in the second quarter of fiscal 2014.
"We are very pleased to announce this LOI to create a significant corn processing entity with 10 processing plants under the State Farm. Upon closing, Asia Bio Chem will become the only foreign-listed affiliate of the State Farm organization. Asia Bio-Chem expects to benefit from financial support and integration with the State Farm corn purchasing and down-stream processing capabilities" stated Mr. Zhiping Wang, President and CEO of Asia Bio-Chem.
About Asia Bio-Chem Group Corp.
Asia Bio-Chem Group, through its wholly-owned subsidiaries in the People's Republic of China ("PRC"), is in the business of processing corn into cornstarch, germ and gluten for sale to the domestic Chinese market. From its plants in Liaoning and Heilongjiang Province, the Company has a total processing capacity of 1.5 million tones of corn per year.
About Beidahuang State Farm Group General Corp
Headquartered in Harbin, Heilongjiang province, the Group is a Chinese state owned enterprise responsible for agricultural development. The Group operates China's biggest farming business including 5.4 million hectares of farmland providing 10% of total grain food supplies to the Chinese population. The Group is involved in forestry, livestock, dairy, grain farming and processing.
This news release contains certain statements that may be deemed "forward looking statements". Such statements include, but are not limited to statements regarding the proposed sale of shares to State Farm by the Controlling Shareholders. The forward looking statements and information are based on certain key expectations and assumptions made by the Company, including expectations and assumptions concerning the completion of the proposed transactions described in this news release. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects,", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Company believes the expectations expressed in such forward looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Forward looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. No assurance can be given that any events anticipated by the forward looking statements will transpire or occur. In particular, no assurance can be given as to whether the proposed transaction described in this news release will be completed and what benefits the transaction will have for the Company. In respect of the forward looking information and statements concerning the anticipated benefits and the completion of the proposed transaction described in this news release, the Company has provided such in reliance on certain assumptions that it believes are reasonable at this time. Accordingly, readers should not place undue reliance on forward looking statements and the Company can give no assurances that they will prove correct. The Company undertakes no obligation to update these forward looking statements, except as required by law, in the event that management's beliefs, estimates or opinions, or other factors, should change.
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Asia Bio-Chem Group Corp.