Lumena raises $122 million towards acquisition payment

The Chinese thenardite producer says it will put the proceeds towards the cash portion of its earlier $1.4 billion acquisition of a 94% stake in a company that will enable it to expand downstream.

Lumena New Materials Corp on Monday raised most of the money needed to make up the balance of the purchase price for Sino Polymer New Materials Co, a company that was partly owned by Lumena’s chairman and which it agreed to buy in November last year. The money was raised through a HK$955.4 million $122 million top-up placement.

Hong Kong-listed and Sichuan-based Lumena is the world’s second largest producer of thenardite, a solid form of sodium sulphate that is an important raw material for the production of powder detergents, dyes, textiles, glass, kraft pulp and pharmaceutical products.

The company, which was previously known as Lumena Resources, had earlier said that it would pay for...

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