Blackgold International Holdings Limited
(ASX:BGG) says it has sold its Hong Kong subsidiary to Matex International for $475 million. Blackgold Holdings Hong Kong holds all of the company’s assets excluding cash.
Blackgold International is a China-based producer of thermal coal to industrial power producers in Shanghai. The company assets include four underground thermal coal mines in inland China and is the country’s largest non-state owned producer.
As China’s manufacturing enterprises shift from coastal regions to inland areas the demand for coal has risen higher than supply which gives Blackgold a geographical benefit.
The deal will constitute a reverse takeover on the Singapore stock exchange and result in a disposal of the ASX listing.
Blackgold International Holdings Limited
(ASX:BGG) produced a net profit of $21 million for the half year ended 30th April 2014.
