JD Capital Establishes Agricultural Investment Fund with Limin Chemical

2015-03-09

Limin Chemical Co., Ltd. (Limin Chemical, 002734), a JD Capital-invested company, was officially listed on the Shenzhen Stock Exchange (SSE) on January 27.

On March 9, Limin Chemical announced the joint establishment of Limin-JD Agricultural Investment Fund with JD Capital. The Fund will serve as a platform for Limin to facilitate chemurgy M&A and integration, and to help the company grow faster and stronger. It boasts a size of 1 billion yuan and Phase I will raise 300 million  yuan.

Currently, Limin is mainly engaged in the R&D, production and sales of agricultural fungicide. Its products include original fungicides such as EBDC, cymoxanil, phosethyl-al and pyrimethanil, as well as preparations and metham, a type of nematicide.

As one of China’s biggest fungicide producers, Limin ranks No.4 in the world and No.1 in China in terms of EBDC capacity, and No.1 in China in terms of cymoxanil, phosethyl-al, rimethanil and metham capacity. According to the company’s strategic plan, underpinned by JD Capital’s investment advantage, the Fund will mainly target at enterprises with rich channels and well-known brands in such areas as farm chemicals, seeds, fertilizers and agricultural machinery, as well as quality chemurgy enterprises dealing in agricultural production means and the surrounding ecosystem.

The Fund will allow both sides to seek investment and M&A targets that are strategically significant to Limin Chemical, which will extend faster by dint of JD Capital’s strong investment ability.

So far, JD Capital has invested in nearly 30 agricultural enterprises. The fund it runs bought shares of Limin Chemical in 2009. Held 19.4% of its shares prior to public issuance, JD Capital was the second largest shareholder of the company.