Zhejiang Longsheng-浙江龙盛拟6.97亿美元买子公司德司达37.57%股份

Core Viewpoint - Zhejiang Longsheng (600352.SH) announced the acquisition of a 37.57% stake in Desida Global Holdings (Singapore) from KIRI Company for approximately $69.65 million, aiming to make Desida a wholly-owned subsidiary and resolve ongoing litigation with KIRI [1][2]. Group 1: Transaction Details - The acquisition involves purchasing KIRI's 37.57% stake in Desida, which has a clear ownership structure and is not subject to any legal restrictions or encumbrances [2]. - Desida's total issued and paid-up capital is SGD 69.83 million, with Longsheng holding 62.43% of the shares and KIRI holding 37.57% [2]. - The valuation of Desida is estimated between$ 1.178 billion and $1.288 billion, based on an EV/EBITDA multiple of 8.6 and projected EBITDA of$ 138 million for 2024 [2]. Group 2: Strategic Implications - This acquisition aligns with the company's strategic goal of becoming a leading global specialty chemicals producer, which is expected to enhance profitability once Desida becomes a wholly-owned subsidiary [3]. - The funding for this transaction will come from the company's own funds and bank loans, leading to a slight increase in overall debt levels [3]. Group 3: Financial Performance - For the fiscal year 2024, Zhejiang Longsheng reported total revenue of CNY 15.88 billion, a year-on-year increase of 3.79%, and a net profit attributable to shareholders of CNY 2.03 billion, up 32.36% [4][6]. - In the first quarter of 2025, the company experienced a revenue decline of 7.21% to CNY 3.24 billion, while net profit surged by 100.44% to CNY 396 million [6][7].