Chinese private equity firm the Primavera Capital Group has acquired a 14.97% stake in China XLX Fertiliser.
Primavera has agreed to subscribe its convertible bonds, worth approximately $51m, through a wholly owned subsidiary.
Net proceeds of around 322m yuan ($50.4m) raised will be used to develop the fourth urea plant and to acquire coal resources.
China XLX Fertiliser chairman and CEO Liu Xingxu said integrating Primavera's experience in the capital market, and its strengths in operation and management, would enhance the company's operating efficiency.
Following completion of the transaction, Lian Jie, a partner at Primavera and the former managing director of Investment Banking Division at Goldman Sachs (Asia), will be appointed as a non-executive director of the board at the company.
