Marubeni puts 15% Anhui Guozhen stake up for sale

Published September 7th, 2017

The share price of Chinese project developer Anhui Guozhen Environmental Protection (AGEP) has fallen 4% since it announced last Friday that Marubeni Corporation is looking to sell its 14.9% stake within the next six months. Today, that stake has a market value of almost RMB900 million ($138 million).

The Japanese trading house bought 30% of AGEP in 2009, but allowed its share to be diluted first through the Chinese firm’s Shenzhen IPO in 2014, then through a 2015 capital increase, and then by pro-actively selling 1.4% of the company in January 2016.

Later that year, the Chinese company wound up its JV with its other Japanese partner, Kubota, and the demise of both partnerships is rumoured to have been partly down to cultural differences.

One Chinese stocks analyst told GWI that he expects a new strategic investor or the parent, Anhui Guozhen Group, to buy most of the shares.