China's Sanfangxiang Industry plans to raise CNY7.65 billion ($1.1 billion) funds for the acquisition of Hailun Petrochemical's polyethylene terephthalate (PET) and purified terephthalic (PTA) assets, according to the company's announcement seen by SSESSMENTS.COM.
Sanfangxiang Industry intends to issue 2.94 billion new shares to raise funds. After the plans were announced, Sanfangxiang's share trading will be suspended on April 15. Sanfangxiang Industry and Hailun Petrochemical are part of Sanfangxiang Group, one of China's biggest polyester producers with over 3 million tons/year of polymerisation capacity.
As SSESSMENTS.COM noted, Hailun Petrochemical has about 2 million tons/year of PET bottle chip production capacity and operates two PTA units, with each capacity of 1.2 million tons/year.
