TORONTO, Feb. 18, 2014 /CNW/ - Asia Bio-Chem Group Corp. (TSX: ABC)
("Asia Bio-Chem" as the "Company") has been advised by its controlling
shareholders that they are in discussions to sell their shares of Asia
Bio-Chem to a subsidiary of the Chinese state-owned Heilongjiang State
Farm Group ("State Farm").
The Company understands that its Chairman and CEO, Zhiping Wang,
together with another significant shareholder, Yong Chin Wang
(together, the "Controlling Shareholders") have entered into
discussions to sell their interest in Asia Bio-Chem to a subsidiary of
the State Farm. The Controlling Shareholders will then invest the
proceeds of the sale back into the subsidiary of State Farm and become
shareholders of the State Farm subsidiary.
"Upon completion of the proposed change in control, Asia Bio Chem will
continue as a Canadian public company and will become part of the
largest corn processing group in China with strong financial backing
and integration of up and down stream capabilities" stated Mr. Zhiping
Wang, President and CEO of Asia Bio-Chem.
About Asia Bio-Chem Group Corp.
Asia Bio-Chem Group, through its wholly-owned subsidiaries in the
People's Republic of China ("PRC"), is in the business of processing
corn into cornstarch, germ and gluten for sale to the domestic Chinese
market. From its plants in Liaoning and Heilongjiang Province, the
Company has a total processing capacity of 1.5 million tones of corn
About Heilongjiang State Farm Group
Headquartered in Harbin, Heilongjiang province, the Group is a Chinese
state owned enterprise responsible for agricultural development. The
Group operates China's biggest farming business including 5.4 million
hectares of farmland. The Group is involved in forestry, lifestock,
dairy, grain farming and processing.
This news release contains certain statements that may be deemed
"forward looking statements". Such statements include, but are not
limited to statements regarding the proposed sale of shares to State
Farm by the Controlling Shareholders. The forward looking statements
and information are based on certain key expectations and assumptions
made by the Company, including expectations and assumptions concerning
the completion of the proposed transactions described in this news
release. Forward looking statements are statements that are not
historical facts and are generally, but not always, identified by the
words "expects,", "plans", "anticipates", "believes", "intends",
"estimates", "projects", "potential" and similar expressions, or that
events or conditions "will", "would", "may", "could" or "should" occur.
Although the Company believes the expectations expressed in such
forward looking statements are based on reasonable assumptions, such
statements are not guarantees of future performance and actual results
may differ materially from those in forward looking statements. Forward
looking statements are based on the beliefs, estimates and opinions of
the Company's management on the date the statements are made. No
assurance can be given that any events anticipated by the forward
looking statements will transpire or occur. In particular, no assurance
can be given as to whether the proposed transaction described in this
news release will be completed and what benefits the transaction will
have for the Company. In respect of the forward looking information and
statements concerning the anticipated benefits and the completion of
the proposed transaction described in this news release, the Company
has provided such in reliance on certain assumptions that it believes
are reasonable at this time. Accordingly, readers should not place
undue reliance on forward looking statements and the Company can give
no assurances that they will prove correct. The Company undertakes no
obligation to update these forward looking statements, except as
required by law, in the event that management's beliefs, estimates or
opinions, or other factors, should change.
SOURCE Asia Bio-Chem Group Corp.