(Yicai Global) Oct. 19 -- Keda Clean Energy Co. [SHE:600499], based in China's southern province of Guangdong, will invest CNY549 million (USD82.9 million) through a wholly-owned subsidiary to buy equity in a lithium extraction firm in northern Qinghai province from two investment funds.
The subsidiary penned an agreement with the two funds on Oct. 18, Keda said in a statement. It plans to buy a 37.8-percent stake in Qinghai Fozhao Lithium Energy Development Co. which, combined with shares held by another Keda subsidiary, will give the listed firm a 43.58-percent stake in the target company to become its largest shareholder, granting it voting rights of 48.58 percent.
Qinghai Fozhao is a leading Chinese firm in the extraction of lithium from brine. Its main business involves taking the lithium carbonate from brine in Qarhan Salt Lake in Qinghai and selling it. It uses a unique technology involving lithium and magnesium, the statement added.