AsiaPhos plans to acquire a Taiwan-based business Global Resources SP (Taiwan) for US$3.5 million, and will be launching a fund-raising exercise to pay for this deal.
The seller is Global Resources England, which is a subsidiary of Solar Plus (HK).
According to AsiaPhos 5WV , the target owns 76.59% of Helio Energy Two Corporation, a Taiwan-based solar assets owner and operator whose primary business activities are those of renewable energy development and solar asset management.
For years, AsiaPhos, led by executive director Ong Hien Eng, was in the mining of phosphate in China but local authorities have disrupted that.
The company says it is trying to renegotiate the mining rights but "any outcome as a result of such discussions or arbitration or appeals as part of the legal process may take some time and may require substantial funding," the company says.
As such, the planned acquisition of the Taiwan solar assets is deemed to be in line with AsiaPhos' diversification and expansion plans "into a more long-term and sustainable business area," the company says.
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