Dragon International to buy 51% stake in Hong Kong pulp importer
Jan 16, 2007 - Dragon International Group said that it has entered into a stock purchase agreement to acquire 51% of Wellton International Fiber Corp in an all stock transaction.
According to Dragon, it will issue restricted shares of its common stock based on the audited net tangible assets of Wellton, which will be issued upon completion of auditing at the closing. The deal is expected to close by March 31, 2007. Dragon expects to issue shares not to exceed a value of US 1,500,000.
Wellton International Fiber, formed in the British Virgin Islands and based in Hong Kong, is an importer of market pulp in China. Wellton generated approximately US$18.5 million in revenues with over US$1 million in net income in 2006 on an un-audited basis.
David Wu, chairman and CEO of Dragon International Group, said, "One of our growth strategies is the external acquisition of businesses that are highly complementary to our own. We feel confident in our ability to merge the Wellton operations into our own and achieve synergies that will enhance both our operations.
SOURCE: Dragon International Group