Henan Tongli Cement is engaged in the manufacturing and distribution of cement, while Yima Coal Industry is engaged in coal mining and production.
Tongli Cement will offer CNY25m (US$3.93m) to Yi Ma Coal Industry Group as a performance guarantee within 10 days after signing an acquisition agreement.
Tongli Cement will inject CNY345m (US$54.24m), CNY148m (US$23.27m) and CNY111m (US$17.45m) into Yimei Cement, and Yimei Cement will use the funds to repay debts owed to Yi Ma Coal Industry Group.
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