Dyno Nobel Takes Stake in Chinese Explosives Manufacturer
Dyno Nobel has acquired 29.9% of the ordinary shares in Fabchem
China Ltd., an explosives company listed on the Singapore stock exchange. The
total consideration of up to S$0.70 per Fabchem share equates to US$31.8 million
which includes an up-front payment of S$0.52 per share, an additional S$0.13 per
share payable upon achieving profit hurdles in 2008, and S$0.05 per share payable
upon Fabchem obtaining an export license. Dyno Nobel said it plans to work closely
with Fabchem to enhance the successful growth of the company in China. As part
of this process, Dyno Nobel will nominate two representatives to Fabchem’s
board of directors. Additionally, Dyno Nobel will have a senior manager seconded
to Fabchem, reporting to the managing director of Fabchem.