(MENAFN- ABN Newswire) 
Altech - All CP's Satisfied for European Equity Strategy Perth, Aug 14, 2019 AEST (ABN Newswire) - Altech Chemicals Limited (Altech/the Company) ( 
ASX:ATC ) ( FRA:A3Y ) is pleased to advise that all of the conditions precedent have now been satisfied for both transactions outlined in its German project equity strategy announced on 18 July 2019. The strategy involves the acquisition of 29% of the shares of Frankfurt stock exchange listed Youbisheng Green Paper AG (to be re-named Altech Advanced Materials AG (AAM)); and the sale by Altech of a right to AAM to acquire 49% of Altech's high purity alumina (HPA) project for US$100m. With the satisfaction of all conditions precedent, Altech will now proceed to completion for both transactions.
To complete its acquisition of 29% of the shares of AAM, Altech will make a cash payment of EUR500,000 and issue EUR1,000,000 of Altech fully paid ordinary shares to the vendor (Deutsche Balaton AG); a balance of EUR1,229,000 cash consideration is due on 1 March 2020. To complete Altech's sale of the right to AAM, for AAM to acquire up to a 49% interest in the Company's HPA project, AAM will make a non-refundable cash payment of EUR500,000 to Altech.
The satisfaction of all conditions precedent has resulted in:
1. The appointment of Altech's managing director Mr Iggy Tan and alternate non-executive director Mr Uwe Ahrens to the management board of AAM;
2. The appointment to the supervisory board of AAM, Altech's nominee Mr Dieter Rosenthal, with 2 additional Altech nominees to be appointed to the 5 member board in due course;
3. shareholders approving the change of company name to Altech Advanced Materials AG;
4. shareholders approving a capital increase of up to EUR63,102,080; and
5. Altech's satisfaction with all of its due diligence inquiries of AAM.
Altech managing director Iggy Tan said "it is pleasing to have documented both transactions of our German equity strategy in a very short time-frame, and to have satisfied all of the conditions precedent items within four weeks of signing the agreements.
The next step following transaction completion is for AAM to appointment a German bank and brokers to manage a Europe marketing campaign for its pre-approved capital raise. We understand that there has already been interest in the proposed raise from potential European investors, attracted by the guaranteed year-6 buy-back and agreed return.
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About Altech Chemicals Ltd
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