Hengfeng Paper advances with asset acquisition plan

Mudanjiang Hengfeng Paper (SSE:600356) announced it is progressing with its plan to acquire 100% of Sichuan JinFeng Paper through the issuance of shares. The transaction could result in Zhang Hua, the counterparty, and Sichuan Fuhua Bamboo Pulp & Paper Group becoming affiliates of Hengfeng Paper, triggering related-party transaction rules. The company stated that the deal doesn't constitute a major asset restructuring but will involve share issuance. Hengfeng Paper's board approved the plan on November 28, 2024. The company is now conducting due diligence, auditing, and valuation work, and will release relevant documents as required. The announcement cautioned that the deal is subject to necessary approvals and carries uncertainty.