Mergers & Acquisitions ·
Origin Agritech subsidiary agrees to sell 70.5% stake in Xinjiang Originbo for RMB108M ($15M)
SEEDOrigin Agritech Ltd
Origin Agritech Limited's subsidiary, Beijing Origin Agriculture, agreed to sell a 70.5184% stake in Xinjiang Originbo Seed Limited to Hunan Xindaxin Limited for RMB 108 million (approximately US$15 million). The transaction is classified as a related party sale because the CEO holds an interest in the buyer. Payment occurs via four installments through June 2027, with RMB 11.39 million offset by existing debt. Upon transfer of control, Origin Agritech will deconsolidate Xinjiang Originbo and lease back its seed production assets for RMB 4 million annually over five years. This strategic divestiture allows the company to retain operational revenue while reducing balance sheet exposure in its hybrid crop seed production business.