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China Mining axes S$37.2 million pomegranate deal involving its chairman

MAINBOARD-LISTED China Mining International has scrapped a deal to buy a Chinese pomegranate cultivator after the long-stop date for the conditional share purchase agreement was not extended.

China Mining has issued a notice of termination over the planned S$37.2 million purchase of 63.11 per cent of Henan Zhongnong Huasheng Agricultural Science and Technology Co, the board said on Monday.

The structure of the proposed acquisition is now set to be reconsidered after talks with executive chairman Guo Yinghui, who is also the vendor in the deal, said the China Mining board.

The board added that it will "make further announcements on any material developments in connection with the above matters as and when appropriate".

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China Mining had planned to seek a whitewash waiver for shareholders to give up their right to a mandatory general offer from Mr Guo and his concert parties, and also wanted to change its company name to Zhongnong Huasheng International.

The agreement with Mr Guo, signed in July 2018, was initially scheduled for completion six months later. But the board said on Jan 23 that more time was needed than had been expected, as "certain diligence matters in relation to the target group's existing operations remain outstanding".

China Mining most recently reported a net loss of 2.99 million yuan (S$604,000) for the year to Dec 31, 2018, on revenue of 35 million yuan.