Hengfeng Paper to acquire Jinfeng Paper in share issuance deal

Mudanjiang Hengfeng Paper (SSE:600356) announced its intent to acquire Jinfeng Paper through a share issuance, according to a filing summary released today. The move, expected to enhance Hengfeng Paper's production capabilities and market position, involves the acquisition of 100% of Jinfeng Paper's equity, a move to strengthen Hengfeng's presence in specialty paper markets. The agreed-upon transaction involves issuing shares to existing Jinfeng Paper shareholders. Valued at CNY26,805.62 thousand, reflecting a 272.20% increase, the deal still requires shareholder approval, clearances from relevant state-owned assets regulatory bodies, and final registration with the China Securities Regulatory Commission (CSRC). Jinfeng Paper holds key assets including land, equipment, and a specialized license for manufacturing cigarette paper, with significant operational income in 2023. The merger is also subject to review by the Shanghai Stock Exchange and other customary regulatory provisions. Mudanjiang Hengfeng Paper's major financial backers have expressed their endorsement, with the enterprise set to integrate with the new subsidiary.