AsiaPhos To Acquire LY Resources In $37 Million Deal

Singapore-headquartered mineral resources firm, AsiaPhos, announced that it will acquire the entire stake in LY Resource (LYR) for $36.8 million from Luo Yong, owner of 50 percent equity stake in Mianzhu Dashan Mining Co (Dashan), the group’s cooperation partner in China.

According to the company, the acquisition will allow it to obtain the economic benefits of an existing cooperation arrangement presently accruing to Dashan and also facilitate the ownership of a 55 percent equity interest in Deyang Fengtai Mining Co (holds the Fengtai License – an exploration license for barite rocks in Sichuan province, China).

The deal is expected to improve AsiaPho’s cash flow and allow it to capitalise on the Fengtai License to expand the effective land area where the firm has mining and exploration rights, resulting in greater economies of scale and operational synergies.

An independent valuation by Jones Lang LaSalle Corporate Appraisal and Advisory in a report dated 26 June 2015 places the valuation of LYR and its subsidiaries at Rmb266.6 million.

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