Sanyou Chemical unit to raise $27.8m via share sale

Tangshan Sanyou Chemical Industries (SSE:600409) announced its subsidiary, Tangshan Sanyou Silicon Industry, intends to raise up to 200 million yuan (approximately $27.8 million USD) through a public offering of new shares. The share expansion will bring in no more than two new investors. Neither Sanyou Chemical itself nor its affiliate Tangshan Sanyou Chlor-Alkali will participate in the capital increase. After completion of the new share offering, Tangshan Sanyou Chemical Industries will still retain its majority ownership of the silicon unit. Proceeds will be used for the subsidiary's development and to boost its working capital. The offering will be conducted through the Hebei Property Rights Exchange.