HONG KONG--(BUSINESS WIRE)--National Agricultural Holdings Limited (“National Agricultural”, or together with its subsidiaries, the “Group”; stock code: (SEHK:1236) has been informed that Coopinvest Company Limited (“Coopinvest Company”), which is under All China Federation of Supply and Marketing Cooperatives (中華全國供銷合作總社) (“ACFSMC”), intends to acquire 34-40% shareholdings in Million Rich Hong Kong Holdings Company Limited (“Million Rich”), the indirect holding company of National Agricultural. After the completion of share transfer, National Agricultural will be beneficially held by ACFSMC and receive strategic support from the entity. The proposed transfer once again underscores the recognition that National Agricultural has achieved in serving as the only overseas-listed platform for China’s nationwide supply and marketing system (SMC system). With the full support of SMC system, National Agricultural is able to capitalize on the impressive resources and network of it to promote the Group’s nationwide business expansion. Furthermore, the leading position and competitiveness of SMC in mainland market will help boost the Group’s impact in the relevant industry. In addition, leveraging the strategic support from ACFSMC, which will be effectuated upon the completion of share transfer, the Group will further optimize its framework of the Internet finance industry chain, and attract high-calibre strategic partners for mutual progress.
Coopinvest Company is owned as to approximately 83.83% by China Co-op Group Company Limited, which is a direct wholly owned subsidiary of ACFSMC. Representing ACFSMC, Coopinvest Company signed the share transfer agreement with Hebei New Cooperation Group Holdings Limited (“Hebei New Cooperation”), which holds 49% shareholdings in Million Rich. Based on the agreement, China Coop will acquire 34-40% of the existing shareholdings that Hebei New Cooperation has in Million Rich.
The signing of the agreement is testament to the fact that the Group is highly regarded by ACFSMC for its role as the only overseas-listed platform for China’s nationwide supply and marketing system, as well as its outstanding performance in Hong Kong’s capital market. The agreement also shows the expectation of ACFSMC to accelerate the overall development of National Agricultural. The Group is indirectly held by Hebei Supply and Marketing Cooperative, and upon the completion of share transfer, ACFSMC will hold beneficiary interests in the Group.
ACFSMC, directly led by the State Council, is a pivotal institution to carry out the government’s policies associated with “Agriculture, Rural Areas and Farmer”. It is responsible for formulating the development strategies and blueprints for the nationwide SMC. The SMC system has made leaps in terms of asset growth and operating performance for several consecutive years. In 2014, the diversified businesses under SMC recorded a turnover of 3,764.6 billion RMB. The SMC system is expected to achieve further growth with greater market potential, leveraging the continuous emphasis and strong support from the government.
Mr. Chen Li-jun, Chairman of National Agricultural, said, “ACFSMC becoming a beneficial shareholder of National Agricultural will enable the Group to tap the incomparable resources and network of ACFSMC to drive nationwide business expansion, and capture opportunities arising from the reform process of SMC system. It is an encouraging sign that the Group recently signed a framework agreement with China Co-Op Group Company Limited - Dalian Renewable Energy Exchange Company Limited, under which the Group’s cash settlement system Agripay system will manage, operate and settle the operating funds by Dalian Exchange’s trading platform. In addition, the past few months have seen more product offerings of different types traded on the Group’s platform for agricultural products. The share transfer will give continuous momentum to the Internet finance industry chain that National Agricultural strives to build and enhance the related business sector.”
About National Agricultural Holdings Limited
National Agricultural Holdings Limited (SEHK:1236) is a rural market-based company that integrates financial services, agri-related trade, information, industry and science research. Its principal businesses are rural financial services, trading in agricultural means of production, planning, operation and management on urbanization development and high-tech information technology, etc. These directives are fully implemented to accommodate China's strategic goal of vigorously developing “Agriculture, Rural Areas and Farmer” sector and a new model of urbanization. Hebei Supply and Marketing Cooperative made an equity investment in National Agricultural Holdings through its subsidiary Parko (HongKong) Ltd. in November 2013.