Sims acquires 20 percent investment in Chiho-Tiande
Sims Metal Management Limited has made a minority investment in Chiho-Tiande Group Limited (CTG), a Hong Kong listed metals and electronics recycler with operations in the People’s Republic of China and Hong Kong.
With main processing facilities in Taizhou and Ningbo, CTG is a mixed scrap metals importer in China and operates three core businesses: a metal recycling business, foundry business and wholesale scrap metal brokerage business.
CTG has expanded into domestic ferrous and nonferrous scrap metal recycling in Shanghai and recently announced further expansion plans to Yantai on the Bohai Coast and Hong Kong with new metals and electronics recycling facilities.
SimsMM has acquired 16 percent of the existing shares of CTG from founder chairman Ankong Fang and Delco Participation B.V. (Delco), a Netherlands-based scrap metal company. Delco has granted an option to SimsMM to acquire a further two percent of CTG.
In addition, subject to approval by CTG’s independent shareholders, SimsMM will subscribe for a convertible bond and be issued warrants. After all instruments are exercised or converted, SimsMM expects to hold 20 percent of the fully diluted issued capital of CTG. In order to support the continued growth plans of the company, Fang and Delco will re-invest two-thirds of the proceeds received from SimsMM into convertible bonds issued by CTG on the same terms as SimsMM.