Recently, the plan of Guizhou Jiulian Industrial Explosive Material Development Co., Ltd. (SZ 002037), a listed company in the civil explosive sector subordinate to China Poly Group Corporation, to purchase assets by share issuance and to carry out related transactions was unconditionally approved by the Listed Company M&A and Restructuring Review Committee of China Securities Regulatory Commission at the Committee’s 56th meeting in 2018.
On November 7, 2018, the plan of Guizhou Jiulian Industrial Explosive Material Development Co ., Ltd. ("Jiulian Development") to purchase assets by shares issuance and to carry out related transactions ("Major Assets Restructuring") was unconditionally approved by the Listed Company M&A and Restructuring Review Committee of China Securities Regulatory Commission at the Committee’s 56th meeting in 2018. On November 28, 2018, the plan was formally approved by China Securities Regulatory Commission.
Jiulian Development is the largest producer of civil explosive materials in Guizhou Province, and one of the enterprises providing the most complete category of civil explosive materials in China. In 2017, its total sales amount accounted for 5.21% of the national total. This deal will help Jiulian Development further expand is production scale, greatly increase the annual licensed production capacity of industrial explosives and detonators, and obtain more obvious scale and competition advantages. Meanwhile, this conforms to the merger and restructuring policy orientation of the civil explosive industry, and is conducive to improving its level of integrated operation, eliminating horizontal competition, reducing related transactions, and enhancing its independence as a listed company.
As the legal advisor of Jiulian Development, JT&N has provided full legal services for this Major Assets Restructuring project. This project is led by Founding Partner Yu TIAN and undertaken by Senior Partners Mingkai WANG and Yinhong LIU. A professional lawyer team composed of Xiaokun JIAO, Yang JI, Hong ZHAO and Junfei HAN have fully participated in and spared no effort to provide timely, efficient, high-quality and all-round legal services for this Major Asset Restructuring project through cooperation and division of work.