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Hubei Huarong to Raise Stake in Construction Materials-Making Unit; Shares Jump 5%
*ST Huarong (600421.SH): intends to acquire 34% equity of its subsidiary Zhejiang Zhuangchen.
On May 6, the company *ST Huarong (600421.SH) announced it had signed an "Equity Transfer Agreement" with Shanghai Qinglan Investment Partnership (Limited Partnership) (referred to as "Shanghai Qinglan") and Hangzhou Dingyou Investment Partnership (Limited Partnership) (referred to as "Hangzhou Dingyou"). Shanghai Qinglan and Hangzhou Dingyou hold 42.5% and 6.5% of the equity in the company's controlling subsidiary Zhejiang Zhuangchen, respectively. The company plans to acquire 27.5% of the equity held by Shanghai Qinglan and 6.5% held by Hangzhou Dingyou in cash, totaling 34% of the equity. After the completion of this equity transfer, the company will hold.
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