Nantong Jiangshan to acquire 90% stakes in Thailand LADDA Group

By CnAgri Print

Chinese company Nantong Jiangshan Agrochemical and Chemical announced to acquire a controlling 90% stake in Thailand LADDA Group at no more than RMB 210 million. Nantong Jiangshan plans to invest another RMB 24.5 million as operating capital after completing the transaction, as a result, the controlling rate will be increased to 91%.

LADDA has been regarded as a leading company in the field of agrochemical business in Thailand. It was founded in 1966 by Mr. Pichai Manichote who is now the president of LADDA Group of Companies. With 230 employees, it generates total sales around 1,000 million bath per annum. They are specialized in crop protection, plant nutrition, plant growth regulators (PGRs), seeds business, floriculture and ornamental plants, tissue culture, post harvest technology and irrigation system.

The equity transaction is subject to the relevant government agency for examination and approval, and is expected to be completed in the first quarter of 2013. Upon completion of the transaction, LADDA Group will become the holding subsidiaries within the consolidated financial statements of Nantong Jiangshan. After the merger of LADDA Group, relying on the preparations factory and customer resources, Nantong Jiangshan will enhance the core competitiveness of the export business. The acquisition will also help Nantong Jiangshan to enhance the size and status of the agrochemical business in the Thailand market and extension of the downstream distribution of agricultural field.