Sanonda

Sanonda, formally Hubei Sanonda Co., Ltd., was a Chinese agrochemical company headquartered in Jingzhou, Hubei Province. Its principal business was the production of pesticides and related agricultural chemical products. The company developed from a predecessor established in 1958 and was reorganized as a joint-stock company during China's broader transition toward market-oriented corporate structures. Its shares began trading on the Shenzhen Stock Exchange in 1993, giving Sanonda a dual-share structure comprising domestically traded A shares and B shares intended for foreign investors in mainland China. The company was initially closely associated with local government ownership. Following the creation of Sanonda Group in 1996, the group became an intermediate holding vehicle for the Jingzhou municipal government, while the Government of Qichun County also held a minority interest. This ownership structure later changed substantially. In 2005, ChemChina became the largest shareholder after acquiring full ownership of Sanonda Group, which at that time held a significant stake in the listed company. Sanonda consequently became part of the consolidation of China's state-linked chemical and agricultural-input assets under ChemChina. Adama Agricultural Solutions became another important shareholder in 2013 when it acquired approximately 10.6 percent of Sanonda's total share capital through part of the company's B shares. The relationship was significant because ChemChina, through China National Agrochemical Corporation, controlled a majority interest in Adama at that time. By the end of 2016, Sanonda Group and Adama together held 30.75 percent of Sanonda, while the Government of Qichun County held a further 0.70 percent. A shares represented 61.27 percent of the company's share capital and B shares represented 38.73 percent. In 2016, Sanonda announced a proposed restructuring intended to acquire all of Adama Agricultural Solutions from ChemChina. The proposed consideration involved issuing new Sanonda shares to ChemChina and to a private-equity vehicle associated with China Cinda. Adama's existing B shares in Sanonda were to become treasury stock and be cancelled. The proposed transaction would have given ChemChina more than 70 percent of the enlarged company, further integrating Sanonda with the international agrochemical business represented by Adama. The precise level of central-government ownership was not established in the available reference material because several ownership links involved state-owned or state-linked entities. Sanonda is therefore best understood as a historically important Chinese listed pesticide producer whose corporate identity was shaped by local-government origins, public-market financing, and later consolidation into ChemChina's agrochemical holdings. The available material does not establish a current standalone operating status, a current website, a definitive present-day management team, or a complete product catalogue.

Sanonda's predecessor was established in 1958 in Hubei Province. The business later became part of China's move toward corporate and capital-market reform. In 1992 it was reorganized as a company limited by shares under the emerging framework of China's Company Law. The following year, its shares began trading on the Shenzhen Stock Exchange. At the time, the Shashi government was the principal shareholder, holding 52.35 percent. Shashi was later merged into the city of Jingzhou, where the company was based. In 1995, the Government of Qichun County acquired a minority interest from the Government of Jingzhou. A year later, Sanonda Group was formed as an intermediate holding company for the Jingzhou government. The group held 44.66 percent of Sanonda at formation and was later known as Sanonda Holdings. This arrangement reflected the important role that local governments played in the ownership and administration of Chinese industrial enterprises during the period. The ownership structure changed in 2005 when ChemChina acquired 100 percent of Sanonda Group. The group held 20.57 percent of Sanonda at that time, making ChemChina the listed company's largest shareholder through the group. Sanonda thereby became connected to ChemChina's wider chemical and agrochemical portfolio. In 2013, Adama Agricultural Solutions acquired part of Sanonda's B-share capital, amounting to about 10.6 percent of the company's total share capital. The transaction also linked Sanonda more closely to ChemChina because ChemChina, through China National Agrochemical Corporation, held 60 percent of Adama at the time. Sanonda's two classes of shares reflected the structure of China's domestic securities market: A shares were available through the domestic market, while B shares were traded for foreign investors in mainland China. A further integration proposal was announced in 2016. Sanonda planned to acquire the entire equity interest in Adama Agricultural Solutions from ChemChina. The consideration was to include newly issued Sanonda shares for ChemChina and for a private-equity entity associated with China Cinda. Adama's Sanonda B shares, which would become treasury stock in the proposed transaction, were intended to be cancelled. If completed as described, the restructuring would have left ChemChina with more than 70 percent of Sanonda. Ownership information reported for 31 December 2016 showed Sanonda Group and Adama together holding 30.75 percent of Sanonda, with the Government of Qichun County holding 0.70 percent. A shares accounted for 61.27 percent of total share capital and B shares for 38.73 percent. The reference material does not establish whether the proposed restructuring was completed, nor does it provide a reliable current corporate identity, management roster, product list, or operating status. Sanonda's documented history is consequently centered on its development as a listed Chinese pesticide producer and its progressive incorporation into ChemChina's agrochemical network.

• 2016

  Proposed acquisition of Adama

  [1]Sanondaen.wikipedia.org

  Sanonda announced a plan to acquire all of Adama Agricultural Solutions from ChemChina through a share-issuance transaction.

• 2013

  Adama acquired Sanonda B shares

  [1]Sanondaen.wikipedia.org

  Adama Agricultural Solutions acquired approximately 10.6 percent of Sanonda's total share capital through its B shares.

• 2005

  ChemChina became the largest shareholder

  [1]Sanondaen.wikipedia.org

  ChemChina acquired full ownership of Sanonda Group, which held a substantial interest in Sanonda.

• 1996

  Sanonda Group formed

  [1]Sanondaen.wikipedia.org

  Sanonda Group was created as an intermediate holding company for the Jingzhou government and held a major stake in the listed company.

• 1993

  Shenzhen Stock Exchange listing

  [1]Sanondaen.wikipedia.org

  Sanonda shares began trading on the Shenzhen Stock Exchange.

• 1992

  Reorganized as a joint-stock company

  [1]Sanondaen.wikipedia.org

  The business was reincorporated as a company limited by shares during China's transition toward a more market-oriented corporate system.

• 1958

  Predecessor established

  [1]Sanondaen.wikipedia.org

  The predecessor of Hubei Sanonda Co., Ltd. was established in Hubei Province.

A Chinese crop-protection and pesticide producer with a listed-company structure and strong historical links to state-owned chemical groups.

• Crop-protection chemicals

  Pesticides

  Pesticides were Sanonda's principal documented business activity. The available reference identifies the company as a producer of agricultural pesticides, but does not provide a sufficiently detailed or verified list of active ingredients, formulations, brands, or individual product families.

• 2016

  Plan to acquire Adama Agricultural SolutionsM&A

  Background

  Sanonda was closely linked to Adama through overlapping ChemChina ownership and Adama's holding of Sanonda B shares. The proposed transaction was intended to consolidate the two agrochemical businesses.

  Action taken

  Sanonda proposed issuing new shares to ChemChina and to a private-equity vehicle associated with China Cinda in exchange for the acquisition of 100 percent of Adama Agricultural Solutions. Adama's Sanonda B shares were expected to become treasury stock and be cancelled.

  Aftermath

  The proposal would have increased ChemChina's ownership of Sanonda to more than 70 percent. The available reference does not confirm whether the transaction was completed.

  Source

• 2016

  Sanonda announced a proposed acquisition of Adama Agricultural Solutions[1]Sanondaen.wikipedia.org

  M&A

  Sanonda proposed acquiring all of Adama Agricultural Solutions from ChemChina through an issuance of new shares to ChemChina and a private-equity vehicle associated with China Cinda. The plan also contemplated cancellation of Adama's Sanonda B shares held as treasury stock.

• 2013

  Adama Agricultural Solutions acquired a significant Sanonda B-share interest[1]Sanondaen.wikipedia.org

  M&A

  Adama Agricultural Solutions acquired approximately 10.6 percent of Sanonda's total share capital through the company's B shares. At the time, ChemChina controlled Adama through China National Agrochemical Corporation.

1. 1Sanondaen.wikipedia.org