Sino-Agri Leading Biosciences Co., Ltd. (603970) has announced the termination of its plan to acquire at least 50% of Taizhou Agricultural Materials Co., Ltd. shares after six months of negotiations.
On November 17, Sino-Agri Leading Biosciences disclosed that it had signed a share purchase intent agreement on May 20 with seven individual shareholders of Taizhou Agricultural Materials, including Tao Weikang and Jin Guofu. The initial plan involved acquiring their combined stake via cash or other means.
The company stated that both parties actively advanced due diligence and asset evaluations following the agreement. However, they failed to reach a consensus on certain core terms of the transaction. After discussions, both sides mutually agreed to terminate the deal to protect their respective interests.
Sino-Agri Leading Biosciences primarily engages in pesticide distribution and plant protection services, offering crop health solutions alongside technical guidance and product processing. Taizhou Agricultural Materials specializes in agricultural product supply and hybrid rice breeding, with a business model covering chain distribution, agency sales, and direct farming partnerships.
The terminated acquisition was expected to enhance Sino-Agri’s market penetration in Zhejiang and synergize with its crop health segment. Despite the setback, the company remains open to future collaboration opportunities with Taizhou Agricultural Materials, pledging compliance with disclosure requirements if negotiations resume.
Financially, Sino-Agri reported a 5.11% YoY revenue increase to RMB 8.95 billion in the first three quarters, but net profit attributable to shareholders fell 13.63% to RMB 151 million.
As of November 17, its shares closed at RMB 13.95, with a market capitalization of RMB 3.7 billion.
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