Sims Metal acquires stake in Chihi-Tiande Group

The global recycling company Sims Metal Management (SimsMM) has acquired a 20 per cent stake in the Hong Kong-based Chiho-Tiande Group (CTG). SimsMM paid a consideration of $170 million for the holding to CTG's founder and chairman Ankong Fang and to Dutch scrap recycler Delco Participation B.V., SimsMM announced on Wednesday.

CTG is reportedly the largest mixed scrap importer in China and active in the metal recycling, foundry and wholesale scrap metal brokerage business. According to SimsMM, the company entered through its Hong Kong subsidiary into a sale and purchase agreement with HWH Holdings, an affiliate of Mr Fang and Delco, to buy 167 million ordinary shares, that is, 18 per cent of the current share capital of CTG. Furthermore, Delco has offerred SimsMM the option to acquire an additional 21 million shares representing a 2 per cent stake in the next two to three years, the global recycling company reported.