Oriental Yuhong subsidiary buys majority stake in Brazilian company

Beijing Oriental Yuhong Waterproof Technology Co. (Oriental Yuhong) announced its wholly-owned subsidiary, OYH Brazil Ltda., has signed an agreement to acquire 60% equity in Novakem Indústria Química Ltda. The total consideration is approximately BRL 108 million, which will be adjusted based on working capital and net debt at closing. This acquisition is part of Oriental Yuhong's internationalization strategy to expand its presence in overseas markets.

Novakem specializes in the research, development, production, and sales of cement additives and concrete admixtures in Brazil. The transaction values Novakem's enterprise at BRL 180 million. The purchase price will be paid in two installments, with 80% due at closing and the remaining 20% plus or minus working capital adjustments paid 60 days after closing.

The transaction is subject to approval by Oriental Yuhong's board of directors and relevant Chinese regulatory bodies. The acquisition is expected to make Novakem a holding subsidiary of Oriental Yuhong, with its financial results consolidated into the company's statements.