After months of negotiation, the Hong Kong Stock Exchange-listed China Zenith Chemical Group Ltd. has failed to reach a binding agreement to acquire Glory Sail International Ltd. Alan Lam reports.
China Zenith (中國天化工集團有限公司) -a leading coal-based chemical manufacturer and supplier that aims to diversify its business into cruise operations - entered into a framework agreement with Glory Sail International Ltd (GSI) and Chen Feng on 13 May 2014 with a view of acquiring GSI.
The company has just announced that the parties to the framework have not been able to reach a formal agreement for this intended acquisition within the framework period, which lapsed on 19 December 2014; therefore the proposed deal has fallen through.
In pursuant of the framework agreement, China Zenith originally intended to buy from GSI not less than 50% of the issued share capital of Eastime Shipping Ltd. and to acquire from Chen Feng no less than 50% shareholdings in Shanghai Eastime Ship Management Ltd.
Eastime is a subsidiary of GSI that manages and operates the 1972-built, 17,042gt cruise ship Ocean Dream, which is owned by Profit Summit Deluxe Cruise.
