February 1 -- Chenguang Biotech Group (300138.SZ), a producer of plant extracts such as paprika oleoresin, capsicum oleoresin, and marigold oleoresin, plans to spend 6.8 million yuan to purchase a minority interest in subsidiary, Hebei Ruide Natural-Pigment, reports Shanghai Securities News, citing a company filing.

The company plans to acquire a total of 4.32 million shares, or a 22.5 percent stake, from nine shareholders, at 1.575 yuan per share.

The actual number of shares that will be acquired will depend on the number of shares that the nine shareholders will sell.

According to Chenguang Biotech, the proposed stake purchase is aimed at strengthening its control over the subsidiary and to maximize value through the integration of resources.

The subsidiary suffered a loss in 2011 due to a large fluctuation of raw material prices and the fact that it only had a single product.

Source:CapitalVue