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Craft Print ventures into chemicals, proposes name change
CRAFT Print International is venturing into chemicals in a bid to diversify from its loss-making printing business. It also plans to change its name to reflect the new business line.
The group has set up a joint venture company Orient-Salt Chemicals (OSC) in which it will hold a 51 per cent controlling stake, with the rest held by an individual named Jiang Hao. OSC will manufacture and trade chemicals.
Mr Jiang, currently the general manager of chemicals distributor Shanghai Orient-Salt Chemical, has many years of experience in the industry, said Craft Print in its announcement. Shanghai Orient-Salt deals in chemicals related to paints, ink, medicine and polymer resin, and has a sales network across China.
Craft Print International has granted Mr Jiang put and call options relating to a total of 69.2 million Craft Print shares, subject to the profitability of OSC until December 2018, for which Mr Jiang will have to transfer shares in OSC to Craft Print. Assuming all the options are exercised, OSC will eventually become a wholly-owned subsidiary of Craft Print.
In line with the new focus, Craft Print International intends to transfer its commercial printing business to its wholly-owned subsidiary Craft Print, to allow the group to organise its current and new businesses separately.
At the same time, Craft Print International intends to change its name to "Abundance International Limited" to better reflect the new business. It will seek approval from shareholders at an extraordinary general meeting (EGM).
The firm will also change its financial year-end from Sept 30 to Dec 31. The current financial year will therefore cover 15 months from Sept 30, 2014, to Dec 31, 2015.