Sichuan Sofcra Special-typed Fiber Co., Ltd ("Sofcra")'s (SZ 000584) private placement of no more than 50 million shares was approved by the Stock Issuance Examination and Verification Committee of the China Security Regulatory Commission in March 2007. The funds from this private placement will be used to acquire a 75% stake in Jiangyin Youli Special Fiber Co., Ltd. from Sofcra's controlling shareholder, Jiangsu Shuangliang Technology Co., Ltd. This acquisition will increase Sofcra's production of fine denier filament spandex by 10,300 tons per year, raising Sofcra's spandex production volume to 17,300 tons per year, and placing Sofcra at the forefront of China's spandex production industry. Since the Ministry of Commerce's 1 October 2006 announcement of its final decision to levy anti-dumping taxes on spandex products imported from Japan, Singapore, Korea, Taiwan, and the USA, Sofcra's spandex production has been the focus of market attention.
As legal counsel to Sofcra, Llinks advised on all aspects of this private placement and acquisition.
March 2007
