In order to reduce the dependence on the purchase of quartz sand, Follett Glass (06865.HK) intends to purchase Dahua Mining and Sanli Mining for no more than 3.65 billion yuan

On October 27, 2017, Follett Glass (06865.HK) announced that according to the "Equity Transfer Agreement" signed by the company and Fengsha Group with conditional effect, the company intends to purchase 100% of the equity of Dahua Mining and 100% of the equity of Sanli Mining held by Fengsha Group by paying cash and assuming debts, and after preliminary consultation between the parties to the transaction, it was determined that the total value of Fengsha Group's 100% equity in Dahua Mining and 100% equity in Sanli Mining did not exceed 365,000.00 yuan.

The core assets to be acquired in this transaction are the quartzite mining rights for glass in Chenghe South Road, Fengyang County, Fengyang County, Dahua Mining and the quartzite mining rights for glass in Damiao Town, Fengyang County, Sanli Mining. The subject of the transaction has abundant reserves of quartzite ore resources, and the reserves of quartzite mining rights for glass in Damiao Town, Fengyang County, Sanli Mining have reserves of 37.445 million tons.

The company said that quartz sand is one of the important raw materials of the company's photovoltaic glass products, and the grade of quartz sand has an important impact on the quality of photovoltaic glass, and the supply price of quartz sand will have an important impact on the cost of photovoltaic glass products. The two quartzite mines owned by the target company of this transaction belong to large quartzite mines, with rich quartzite resource reserves and excellent grades.

After the completion of this transaction, the company will obtain rich quartzite resource reserves, which will help the company to ensure the sand demand and quality safety of the production base, reduce the company's dependence on purchased quartz sand, and further enhance the company's ability to resist risks and continue to operate.

This article originated from Grand Gateway