AsiaPhos to acquire LY Resources for S$36.8m

Singapore

PHOSPHATE miner AsiaPhos is acquiring the entire stake of LY Resources for S$36.8 million in a bid to boost its operating cash flows and expand its resource base. The seller of LY Resources is Luo Yong, who owns half of the equity interest in Mianzhu Dashan Mining Co, the group's cooperation partner in China.

LY Resources is valued at 266.58 million yuan (S$58 million), based on an independent valuation report by Jones Lang LaSalle Corporate Appraisal and Advisory on June 26, 2015.

The acquisition thus follows an earlier condition precedent that LY Resources be valued at no less than 250 million yuan. The acquisition will be paid through the issuance of 101.32 million new AsiaPhos shares to Mr Luo, providing him with an 11.2 per cent stake of the enlarged share capital of Asi…