Luxi Chemical Intends to 'Reversely' Acquire 100% Equity of Luxi Group! Luxi Group Will Cease to Exist

Luxi Chemical (000830.SZ) disclosed on the 17th that it plans to suspend trading and plan to purchase 100% equity of Luxi Group Co., Ltd., that is, to implement absorption and merger of Luxi Group by issuing shares to all shareholders of Luxi Group. After completion, Luxi Group will cancel its legal personality. That is to say, Luxi Group, the largest shareholder of Luxi Chemical, will be merged by its former holding subsidiary and will withdraw from the stage of history.

The stock of Luxi Chemical Co., Ltd. has been suspended since the market opened on April 18. The company expects to disclose the transaction plan within no more than 10 trading days, and the corporate bond "18 Luxi 01" will be suspended from trading.

The announcement pointed out that Luxi Chemical has absorbed and merged Luxi Group by issuing shares to all shareholders of Luxi Group, and the A-shares planned to be issued by Luxi Chemical will apply for listing on the Shenzhen Stock Exchange.

The main counterparties of this transaction are Sinochem Investment Development Co., Ltd. (hereinafter referred to as "Sinochem Investment"), Sinochem Investment (Liaocheng) Co., Ltd., Liaocheng Caixin Investment Holding Group Co., Ltd. and Liaocheng Juju Equity Investment Co., Ltd. 

Among them, Sinochem Investment is a subsidiary holding company of Sinochem Group Co., Ltd. (hereinafter referred to as "Sinochem Group"), which holds 39% equity of Luxi Group, and Liaocheng City, the actual controller of Liaocheng Caixin Investment Holding Group Co., Ltd. The State-owned Assets Supervision and Administration Commission of the People's Government holds 35% equity of Luxi Group. Luxi Group and Liaocheng Caixin Investment Holding Group Co., Ltd. are in the process of transferring all the above 35% equity to Liaocheng Caixin Investment Holding Group Co., Ltd. related procedures.

According to reports, Luxi Group is a state-owned holding company, formerly known as Shandong Liaocheng Luxi Chemical Group Corporation, its predecessor was the Liaocheng Luxi Fertilizer Factory built in 1976. Up to now, the total assets are 32.3 billion yuan, and there are more than 12,000 employees. The main business scope is basic chemicals, new chemical materials, fertilizers, design and development, chemical engineering and other industrial sectors. The company initiated the establishment of Luxi Chemical in May 1998, listed on the Shenzhen Stock Exchange, and joined Sinochem Holding Co., Ltd. in 2020.

After Luxi Chemical was listed, the development of the chemical industry of Luxi Group was mainly based on Luxi Chemical. In 2009, the name of Luxi Chemical Company was also changed to Luxi Chemical Group Co., Ltd. Luxi Group also controls the development of listed companies by holding a 33.6% stake in Luxi Chemical.

In 2019, Liaocheng agreed to carry out a strategic reorganization of Luxi Group, which led to Sinochem Investment becoming the largest shareholder of Luxi Group and gaining control, which paved the way for Luxi Group's current "curtain call".

Looking back on the development of the company, it can be said that it has a long history and a glorious inheritance.

In 1990, according to government requirements, Liaocheng Luxi Chemical Fertilizer Plant was restructured and established Shandong Zhengtongda Industrial (Group) Corporation, and then successively merged Dong'a Chemical Fertilizer Plant, Yanggu Luxi Chemical Plant, Liaocheng Chemical Machinery Plant and Liaocheng Boiler Plant ; In April 1996, Shandong Zhengtongda Industrial (Group) Corporation was changed to Shandong Liaocheng Luxi Chemical Group Corporation.

In 1998, Luxi Chemical Group Corporation planned to go public, and divided Liaocheng Luxi Fertilizer Factory and Dong'a Fertilizer Factory for integration and reorganization, and established Shandong Luxi Chemical Co., Ltd., which was successfully listed on the Shenzhen Stock Exchange in August 1998.

It is worth noting that in recent years, Luxi Group once ranked first in the country's fertilizer production and sales for six consecutive years.

According to the absorption and merger intention agreement signed by all parties on April 15, Luxi Chemical will absorb and merge with Luxi Group by issuing shares to all shareholders of Luxi Group. listed in circulation. After the implementation of this merger by absorption, Luxi Group will cancel its legal personality, the shares of Luxi Chemical held by Luxi Group will be canceled, and Sinochem Investment, Sinochem Liaocheng, Liaocheng Caixin and Juju Investment will directly hold new shares of listed companies. issued shares.

Sinochem Investment, Sinochem Liaocheng, Liaocheng Caixin and Juju Investment will directly hold newly issued shares of listed companies. The transaction price of Luxi Group, the price and number of new shares issued by Luxi Chemical, and other unresolved matters, the official "Luxi Chemical Group Co., Ltd. Absorbing and Merging Luxi Group Co., Ltd. Agreement by Issuing Shares" signed by all parties. and its supplementary agreement shall be stipulated separately.