BVI-registered crop seed biotechnological company Origin Agritech Ltd. entered into a definitive agreement for sale of its China-based commercial corn seed production and distribution business to Beijing Shihui Agricultural Development Co, Ltd., an internet enterprise providing agricultural products and technology services to farmers, suppliers and agriculture-related enterprises in China. The business is sold for approximately USD$60 million as part of company management's plan to develop Origin as a global seed germplasm and biotech trait leader. It is considered that the sale of Origin's commercial seed business would strengthen its balance sheet and enable it to focus on biotechnology trait and seed germplasm research.
The transaction is expected to be closed in the first quarter of 2017, and is subject to customary closing conditions and shareholder approval. According to the agreement, the buyer of BVI company's business will enter into separate license agreements, to pay a royalty stream for the present and future product portfolio, and a technology access fee for the research and development.
By words of Origin CEO Bill Niebur, through this transaction and the development of North American non-GM business, the company is setting the stage for compelling growth opportunities.
