Shengtai Group (605138.SH) subsidiary plans to acquire 58% of GOLDEN EAGLE's shares for $13.339 million

Zhitong Finance App News, Shengtai Group (605138.SH) announced that HAI MINH TEXTILE JOINT STOCK COMPANY (“HAI MINH”), a wholly-owned overseas subsidiary of the company, intends to use its own capital and bank loans to acquire GOLDEN EAGLE (VIET NAM) HEMP INDUSTRY COMPANY LIMITED (“GOLDEN EAGLE” for short) or the “target company” held by Zhejiang Golden Eagle Co., Ltd. ”) 58% equity with a transaction amount of USD 133.39 million.

Prior to this acquisition, the company had already indirectly held 42% of GOLDEN EAGLE's shares through its wholly-owned subsidiary Xinma Clothing Co., Ltd. After the acquisition is completed, the company will indirectly hold 100% of GOLDEN EAGLE's shares, and GOLDEN EAGLE will become the company's overseas wholly-owned subsidiary and included in the scope of the company's consolidated statements.

The target company GOLDEN EAGLE's main business is R&D, production and sales of hemp yarn products, and is a key production capacity carrier in the company's overseas hemp spinning industry chain. This acquisition will help the company to further cultivate the main textile industry, implement overseas hemp production capacity layout plans, fully explore the collaborative value of cotton and linen double natural fibers, and build a more complete global industrial chain layout.