Chinese state-owned financial giant Citic Group will invest up to CNY1.2 billion (USD167 million) in its majority-owned seed breeding subsidiary Yuan Longping High-Tech Agriculture to speed up the implementation of the national seed industry revitalization strategy.
Citic Agriculture Technology will buy up to 152.5 million shares of Longping High-Tech for CNY7.87 (USD1.10) apiece in a private placement, hiking its stake to 25.9 percent from 17.4 percent, Changsha-based Longping High-Tech announced yesterday.
Shares of Longping High-Tech [SHE: 000998] closed 1.4 percent down at CNY9.96 in Shenzhen today.
The proceeds will be used to repay bank loans and supplement working capital, enabling the company to hike investment in research and development and conduct industrial integration to better support China's seed industry revitalization action plan, Longping High-Tech noted.
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