PriceSensitive

Altech’s US$100M back-and-forth deal with German paperboard company

Finance
ASX:ATC      MCAP $104.1M
22 August 2019 23:53 (AEST)

Altech (ATC) has confirmed the purchase of a 29 per cent interest in the Frankfurt Stock Exchange-listed company Youbisheng Green Paper.

In return, Youbisheng Green Paper’s name will be changed to Altech Advanced Materials (AAM) and it will buy a 49 per cent stake in the company’s HPA Project.

ATC’s Managing Director Iggy Tan said: “We are very excited with the prospect of working with AAM on its European marketing campaign and implementing our German project equity strategy.”

AAM is set to buy its interest in ATC for US$100 million, and has so far paid a €500,000 non-refundable fee.

For ATC’s interest in AAM, the company has issued €1 million worth of its shares, alongside €500,000 in cash.

The next step for the companies is a €69.4 million capital raising plan being kicked off by AAM, which will issue 63 million new shares at €1.10 each.

According to Iggy: “Altech’s German equity strategy does not preclude the other joint venture partner initiatives that are underway.”

Going forward, the two companies are working on aligning branding, including logos and website design.

Altech’s share price remains steady today, at $0.10 per share, as of AEST 12:14 pm.

Related News