TORONTO, Feb. 18, 2014 /CNW/ - Asia Bio-Chem Group Corp. (TSX: ABC) ("Asia Bio-Chem" as the "Company") has been advised by its controlling shareholders that they are in discussions to sell their shares of Asia Bio-Chem to a subsidiary of the Chinese state-owned Heilongjiang State Farm Group ("State Farm").
The Company understands that its Chairman and CEO, Zhiping Wang, together with another significant shareholder, Yong Chin Wang (together, the "Controlling Shareholders") have entered into discussions to sell their interest in Asia Bio-Chem to a subsidiary of the State Farm. The Controlling Shareholders will then invest the proceeds of the sale back into the subsidiary of State Farm and become shareholders of the State Farm subsidiary.
"Upon completion of the proposed change in control, Asia Bio Chem will continue as a Canadian public company and will become part of the largest corn processing group in China with strong financial backing and integration of up and down stream 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 Heilongjiang State Farm Group
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. The Group is involved in forestry, lifestock, 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.
SOURCE: Asia Bio-Chem Group Corp.
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Asia Bio-Chem Group Corp.