Dentons Biochemicals will spin off Dentons Sugar Industry Hong Kong Listing

the world's third largest corn processor Dentons Bio (0809HK) announced that it had made a formal application to the Hong Kong Stock Exchange on August 2 to spin off its Dentons Sugar industry on the Main Board, with an estimated capital raising of up to HK$690 millionIt is estimated that dentons can generate a one-time gain of about HK$312 million for the spin-offsaid that because the group and Dentons sugar products, the two have different growth directions and strategies, the spin-off plan will form two companies with clear business concepts, so that Dentons sugar valuation potential is reflectedAnalysts also point out that the spin-off also allows the two to focus on their core businesses to improve operational efficiency, in accordance with the Company's proposed spin-off submission to the Stock Exchange, 15 million shares of Dentons Sugar will be reserved for preferred subscription by Dentons Biochemical shareholders, equivalent to 5% of the public offering shares, with a subscription basis of 1 share of Dentons Co-sprestable shares for each of the 154 shares held by Dentons Biochemicalsthe completion of the spin-off, Dentons' public shareholding will be equivalent to about 30% of the expanded issued share capital, Dentons' indirect interest in Dentons Sugar will be reduced from 100% to 70%, and if the excess equity is exercised, the company's interest in Dentons Sugar will be reduced to 67% and the public's shareholding will be increased to 33%Dacheng Sugar Industry is the operating branch of Dentons' corn sweetenerAs at 31 December 2006, Dentons Sugar had a reviewed net consolidated tangible asset value of approximately HK$208 million, and net after-tax net profit for the past two years was HK$95.67 million and HK$157 million, respectivelythe spin-off, Dentons' expected net capital raising of about HK$600 million will increase to HK$690 million if the over-allotment of equity is exercised, mainly for the construction of new production facilities in Jinzhou City and Changchun City, the expansion of production facilities for high-fruit corn syrup products and the use of general working capitalDentons biochemicals are mainly engaged in the manufacture and sale of corn-based refining products in China, including upstream and downstream productsUpstream products include corn starch, corn protein meal, and other corn refining productsCorn starch is then refined into a series of high value-added downstream products, including amino acids, corn sweeteners, degenerative starch and chemical products polyolsin terms of sweeteners products, the company has grown to 1.14 million tons of corn sweeteners, ranking among the top three corn sweeteners producers in the country by capacityIn addition, the new crystalline glucose plant will be fully operational this yearThe company said it would further develop and expand the capacity of glucose, dextrin and crystalline glucose in due courseDentons also said recently that each of its products in its own market has a leading position and considerable market share, so it is from a long-term perspective to review the current business mix and development layout, hoping to play the capital market function to accelerate the independent development of different products business the world's third largest corn processor Dentons Bio (0809 HK) announced that it had made a formal application to the Hong Kong Stock Exchange on August 2 to spin off its Dentons Sugar industry on the Main Board, with an estimated capital raising of up to HK$690 million It is estimated that dentons can generate a one-time gain of about HK$312 million for the spin-off said that because the group and Dentons sugar products, the two have different growth directions and strategies, the spin-off plan will form two companies with clear business concepts, so that Dentons sugar valuation potential is reflected Analysts also point out that the spin-off also allows the two to focus on their core businesses to improve operational efficiency , in accordance with the Company's proposed spin-off submission to the Stock Exchange, 15 million shares of Dentons Sugar will be reserved for preferred subscription by Dentons Biochemical shareholders, equivalent to 5% of the public offering shares, with a subscription basis of 1 share of Dentons Co-sprestable shares for each of the 154 shares held by Dentons Biochemicals the completion of the spin-off, Dentons' public shareholding will be equivalent to about 30% of the expanded issued share capital, Dentons' indirect interest in Dentons Sugar will be reduced from 100% to 70%, and if the excess equity is exercised, the company's interest in Dentons Sugar will be reduced to 67% and the public's shareholding will be increased to 33% Dacheng Sugar Industry is the operating branch of Dentons' corn sweetener As at 31 December 2006, Dentons Sugar had a reviewed net consolidated tangible asset value of approximately HK$208 million, and net after-tax net profit for the past two years was HK$95.67 million and HK$157 million, respectively the spin-off, Dentons' expected net capital raising of about HK$600 million will increase to HK$690 million if the over-allotment of equity is exercised, mainly for the construction of new production facilities in Jinzhou City and Changchun City, the expansion of production facilities for high-fruit corn syrup products and the use of general working capital Dentons biochemicals are mainly engaged in the manufacture and sale of corn-based refining products in China, including upstream and downstream products Upstream products include corn starch, corn protein meal, and other corn refining products Corn starch is then refined into a series of high value-added downstream products, including amino acids, corn sweeteners, degenerative starch and chemical products polyols in terms of sweeteners products, the company has grown to 1.14 million tons of corn sweeteners, ranking among the top three corn sweeteners producers in the country by capacity In addition, the new crystalline glucose plant will be fully operational this year The company said it would further develop and expand the capacity of glucose, dextrin and crystalline glucose in due course Dentons also said recently that each of its products in its own market has a leading position and considerable market share, so it is from a long-term perspective to review the current business mix and development layout, hoping to play the capital market function to accelerate the independent development of different products business (name)