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Guangdong Foreign Trade buys 20.78% stake in Foshan Plastics

Published: 18 Jun 2009 17:15:10 PST

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Jun. 19, 2009 (China Knowledge) - State-owned Guangdong Foreign Trade Group Co Ltd has purchased a 20.78% stake in Foshan Plastics Group Co Ltd<000973> from the latter's largest shareholder for RMB 619 million or RMB 4.86 per share, said Foshan Plastics on Jun. 18.

Guangdong Foreign Trade, which is now the biggest shareholder of Foshan Plastics, will integrate its businesses but not change the core business of the plastic firm.

In 2008, Foshan Plastic recorded a net loss of RMB 195 million. The company has predicted that its losses will be between RMB 15 million and RMB 28 million in the first half of this year.

On May 18, Star Lake Bioscience Co Inc Zhaoqing Guangdong<600866>, which is engaged in the production and sales of raw chemicals, pharmaceuticals, seasoning products and feed additives, increased the number of board directors from four to nine. Of the five new directors, Guangdong Foreign Trade appointed three.

In the next three years, Guangdong Foreign Trade intends to expand in six major industries that include the development of hardware and building materials, mining and metallurgy, and chemical products. In addition, the firm plans to list five companies.

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