"Two Saline Lake" Reorganization Was Approved By The SFC

According to the CSRC announcement, "two Saline Lake" reorganization was approved by the SFC.

In the final plan, the price of Saline Lake's potash fertilizer has a risk premium of 42.36%, which is 73.83 yuan / share, and the exchange price of Saline Lake group is 25.46 yuan / share.

The share exchange ratio between the two sides is 2.9 to 1, that is, every 2.9 shares of Saline Lake group share 1 shares of Saline Lake potash shares, and the shareholders of Saline Lake group will have cash options.

This plan has been adjusted with the first plan announced by both sides in December 26, 2008.

In the first announced plan, the share exchange ratio between the two sides was 3 to 1, while the Saline Lake group's share price was 33.02 yuan / share, and the exchange price of Saline Lake potash fertilizer was 83.48 yuan / share.

Another difference from the previous plan is that Saline Lake group's dissenting shareholders' cash option has been reduced from 33.02 yuan to 25.46 yuan, while retaining the right to purchase the dissenting shareholders of Saline Lake potash fertilizer.

According to the announcement, after the merger is completed, the potash fertilizer will continue in Saline Lake, and the Saline Lake group will cancel it.

Saline Lake potash will add 1 billion 58 million shares of A shares and cancel 235 million shares of Saline Lake potash shares held by Saline Lake group.

The total share capital of Saline Lake's potash fertilizer will reach 1 billion 590 million shares, and the actual controller is still the SASAC of Qinghai.

In addition, the resource reserves of Saline Lake group will enter Saline Lake's potash fertilizer, thus the Saline Lake potassium fertilizer holding company will no longer have to pay mineral usage fees to the group, thereby greatly reducing production costs and increasing gross profit margins.

More importantly, the potash fertilizer in Saline Lake has acquired 28.27 years of residual service life and a capacity of 54 million 140 thousand tons of recoverable potassium chloride, so that the long-term development of the company is fully protected.

The following is the full text of the announcement:

Announcement of the twentieth meeting of the Commission on mergers and acquisitions in 2010

The twentieth meeting of the China Securities Regulatory Commission's merger and reorganization committee was held in June 12, 2010 in 2010.

The results of the meeting are hereby announced as follows:

Qinghai Saline Lake potash Limited by Share Ltd conditionally passed

Supervision Department of listed companies

June 12th, two