It is reported that real estate company Shanghai Duolun Industry plans to acquire a 45% stake in Xinjiang Dongping Coking for CNY 180 million.

The target company is forecast to generate net profit of CNY 100 million in 2012 and earn not less than CNY 200 million in 2013 and 2014.

According to the filing, Duolun will spend CNY 80 million to purchase a 26.67% stake and later inject CNY 100 million to raise the target company's registered capital to CNY 400 million.

After the completion of the transactions, Duolun will have a stake of 45% in Xinjiang Dongping Coking. Dongping Coking, which was founded in May 2009, started construction in August 2009 on a 1.2 million-ton tamping coke production facility.

The facility currently has 600,000 tons of tamping coke and 30,000 tons of coal tar production capacity. Upon the completion of the second phase in October 2012, the facility will be able to produce 1.2 million tons of tamping coke and 60,000 tons of coal tar.

Based on its 45% shareholding, the target company is expected to contribute CNY 45 million of net profit to Duolun in 2012 and CNY 90 million in 2013 and 2014.

Dongping Coking had recorded a loss of CNY 15.89 million in 2010.

(Sourced from Shanghai Securities News)