In the company’s news Wednesday,
China Opportunity Acquisition announced success in an agreement to merge with one of China’s leading specialty steel producers. The Chinese company is called Golden Green Enterprises, Ltd. (“BVICo”), and its steel producing subsidiary is called Henan Green Complex Materials Co., Ltd. (“Ge Rui”).
Under terms of the agreement, BVICo will be the surviving entity, with Ge Rui’s current management team remaining in place. China Opportunity’s Chairman and CEO, Harry Edelson, will become a director of the combined company, and will name one additional director to the seven member board. The combined company is expected to change its name to China Opportunity Holdings Ltd., with its securities to be listed on NASDAQ.
Mr. Edelson explained China Opportunity’s choice of BVICo and Ge Rui. “Ge Rui has emerged as one of the largest privately-owned cold-rolled specialty steel makers in China. Specialty cold-rolled steel manufacturing is a highly attractive niche segment of the steel market in China, due to strong demand and given that only a few domestic manufacturers are capable of producing these high quality steel products. Ge Rui’s advanced production technology and state of the art facilities in China enable it to compete against larger international players, as they are able to supply the same high quality products to domestic manufacturers, but at a lower price.”
“Ge Rui’s execution combined with the attractive market dynamics have led to robust top and bottom line growth. Revenues and net income between 2005 and 2007 increased at a compound annual growth rate of 49% and 74%, respectively. Results for the first six months of 2008 remained very strong, as revenue increased 49% and net income rose 77% year over year. We look forward to building on this solid track record by executing an aggressive growth strategy, which consists of increasing production capacity, expanding into new higher margin products lines, and entering the export market,” he continued.
The merger is scheduled to finalize in March of 2009.
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