China Sunsine Attracts Prominent Institutional Investors in Major Share Sale, Signals Long-Term Confidence

Key Highlights

• Success More Group Limited (majority shareholder) sold 42 million shares (~4.41% of total issued shares) of China Sunsine Chemical Holdings Ltd at S\$0.66 per share for S\$27.72 million in cash.
• The sale involved leading institutional investors including Areca Capital, Asdew Acquisitions, Astral Value Fund VCC, Avanda Investment Management, Azure Capital, Evolve Capital Management, Ginko-AGT Global Growth Fund, ICH Capital, Lion Global Investors Ltd, and various high net worth corporate and individual investors.
• Success More’s shareholding decreases from 61.60% to 57.19% post-transaction, but it retains majority control.
• Success More (and by extension, Executive Chairman Xu Cheng Qiu) has imposed a self-moratorium on further share sales for six months.
• Proceeds from the sale will be partly used for philanthropic activities in China and to reward past employees who contributed to the Group’s success.
• The transaction is expected to enhance trading liquidity and optimize shareholding structure.
• China Sunsine continues to serve over three-quarters of the world’s top 75 tyre makers and is the largest rubber accelerator producer globally.

In-Depth Analysis for Investors

China Sunsine Chemical Holdings Ltd, a global leader in specialty rubber chemicals, has announced that its majority shareholder, Success More Group Limited, has executed a significant off-market sale of 42 million ordinary shares. The transaction, facilitated through Maybank Securities Pte Ltd, was completed at S\$0.66 per share, amounting to a total value of S\$27.72 million.

Notably, the buyers are a star-studded roster of institutional investors and funds, including Areca Capital, Asdew Acquisitions, Astral Value Fund VCC, Avanda Investment Management, Azure Capital, Evolve Capital Management, Ginko-AGT Global Growth Fund, ICH Capital, and Lion Global Investors Ltd (acting for its clients). The deal also attracted high net worth corporate and individual investors, underscoring strong institutional confidence in the company’s long-term prospects.

Post-sale, Success More’s stake has declined from 61.60% to 57.19%, but the group remains the controlling shareholder. According to Executive Chairman Mr. Xu Cheng Qiu, this marks the first time Success More has reduced its stake since the company’s 2007 IPO. He emphasized that the move is designed to improve the trading liquidity of China Sunsine’s shares on the Singapore Exchange and optimize the shareholding structure, without relinquishing control.

Price-Sensitive Implications for Shareholders:

• This is a rare block trade by the controlling shareholder, indicating a strategic effort to broaden the investor base and potentially attract further institutional interest.
• Success More has voluntarily committed to a self-imposed six-month moratorium on any further share sales, which should provide reassurance to the market and reduce concerns about further near-term overhang.
• The Executive Chairman has personally pledged to use proceeds for philanthropic initiatives in China and to reward past employees, which may enhance the company’s reputation and employer branding.
• Enhanced trading liquidity from the entry of new institutional investors could potentially lower the stock’s volatility and support better price discovery going forward.

Company Profile and Industry Standing:
China Sunsine is a leading manufacturer of rubber accelerators, insoluble sulphur, and anti-oxidants, serving more than three-quarters of the global top 75 tyre makers, including industry giants such as Bridgestone, Michelin, Goodyear, Pirelli, and major Chinese tyre producers like Hangzhou Zhongce and Sailun Tires. The company’s flagship “Sunsine” brand is recognized as a “Shandong Province Famous Brand” and has received accolades from the Chinese Ministry of Industry and Information Technology as a National Champion Manufacturing Enterprise.

The Group has consistently expanded its production capacity, maintained high standards for product quality, environmental protection, and occupational health and safety, as evidenced by its ISO certifications. With sustained demand from the global auto and tyre sectors, China Sunsine is well-positioned for growth.

In closing, Mr. Xu reiterated the company’s commitment to shareholder value creation and sustainable growth, thanking shareholders for their enduring support.

Why This News Matters for Shareholders

• Entry of multiple institutional investors is a strong vote of confidence in the company’s long-term prospects and could increase market interest in the stock.
• Enhanced liquidity from this transaction could attract more investors and facilitate easier trading, which may support valuations.
• Moratorium on further sales by the major shareholder reduces the risk of further dilution or overhang in the near term.

These developments are potentially price-sensitive and could influence investor sentiment and the share price of China Sunsine.

Contact Information

• Tong Yiping, Executive Director cum Chief Financial Officer – [email protected]
• Jennie Liu, Investor Relations Manager – [email protected], Tel: (65) 6220 6686 / 9835 8408

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research or consult a professional advisor before making any investment decisions. The author and publisher accept no liability for any losses arising from the use of this information.

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