Sutor Tech. Unit Inks LoI To Acquire Shanghai Huaye - Quick Facts

(RTTNews) - Sutor Technology Group Ltd. (SUTR) said its subsidiary, Changshu Huaye Steel Strip Co., Ltd., signed a non-binding letter of intent dated February 8, 2015 or LOI with the shareholders of Shanghai Huaye Iron & Steel Group Co., Ltd. The LOI contemplates a transaction in which Changshu Huaye would acquire Shanghai Huaye, a company incorporated and existing in China.

The firm anticipates that Changshu Huaye would be a controlling shareholder of Shanghai Huaye when this transaction is completed. Presently, Shanghai Huaye has eight subsidiaries, which have 53 precision processing lines, with a total annual processing capacity of around 10 million tons and a total annual storage capacity of nearly 15 million tons.

Consummation of the transaction is subject to entry into a definitive agreement between the parties containing specific signing and closing terms and conditions yet to be negotiated.

Chief Executive and President of the Company commented, "We are pleased that we have seized the opportunity in industry transformation and taken an important step in seeking potential acquisition targets. After signing the LOI, we will carry out audit and assessment on Shanghai Huaye. We believe this transaction will provide a positive impetus for Sutor's business transformation. Our strategic expansion will make Sutor an integrated service provider of research and development, sales, processing, logistics and e-commerce of customized fine finished steel. We will provide an update on our progress of the transaction when and if appropriate."