Forte Rubber International Inc., a subsidiary of Sailun Jinyu Group, signed equity transfer agreements with four shareholders of GOMA International Corp. on July 18.
Forte Rubber International belongs to Shenayng Heping Radial Tire Manuracturing Co., Ltd., a wholly owned subsidiary of Sailun Jinyu Group.
According to the agreements, Forte Rubber International intended to buy a 15% stake in GOME International owned by the four shareholders for 30 million Canadian dollars.
Registered in Ontario, Canada, GOME International is a corporation engages in special tire R&D, tire retreading and tire trade, with its marketing network reaching countries in North America and Europe.
Business revenue of GOME International in 2015 reached 755.34 million CAD and the company’s net profit was 5.12 million CAD.
In the first half of this year, GOME International’s net profit was 2.58 million CAD. As of June 30, the company’s net assets valued 80.53 million CAD.
The price offered by Forte Rubber International was higher than the book value of the net assets of GOME International.
Sailun Jinyu Group explained that as GOME International is a company engages in trade, special tire R&D, and retreading technology R&D, the latter’s marketing channel and consumer pool are valuable intangible assets.
Before the equity transfer, Forte Rubber International owns an 85% stake in GOME International, and the proportion will rise to 100% after the deal.
Sailun Jinyu believes that the deal will help improving its capacity of international operation as well as brand influence.
