SimsMM has acquired 16% of the existing shares of CTG from founder chairman Ankong Fang and Delco Participation, a Netherlands-based scrap metal company.
Delco has granted an option to SimsMM to acquire a further two percent of CTG.
With main processing facilities in Taizhou and Ningbo, CTG is a mixed scrap metals importer in China and operates three core businesses: a metal recycling business, foundry business and wholesale scrap metal brokerage business.
CTG has expanded into ferrous and non-ferrous scrap metal recycling in Shanghai and recently announced further expansion plans to Yantai on the Bohai Coast and Hong Kong with new metals and electronics recycling facilities.
In addition, subject to approval by CTG’s independent shareholders, SimsMM will subscribe for a convertible bond and be issued warrants.
After all instruments are exercised or converted, SimsMM expects to hold 20% of the fully diluted issued capital of CTG.
