Stone Tan China Acquisition (Stone Tan) will be seeking stockholder approval to fund up to three separate newly-formed entities (established under the laws of the People’s Republic of China) to operate in the non-bank financial services industry targeting the needs of small and medium sized enterprises (SMEs).
Stone Tan China (Hong Kong) Company, a wholly-owned subsidiary of Stone Tan, has entered into agreements with Chongqing State-Owned Assets Supervision and Administration Commission, a department of the Chongqing government and its subsidiary, Chongqing Yufu Assets Operation and Management.
The company was granted licenses for a credit guaranty company, a financial leasing company and a small sum loan company. Pursuant to such licenses, Stone Tan intends to make the following investments: $85 million for an approximately 85% interest in Chongqing Stone Tan Credit Guarantee Company (CGC); $60 million for a 95% interest in Chongqing Stone Tan Financial Leasing Company (FLC); and $60 million for a 100% interest in Chongqing Stone Tan Small Business Loans. The company’s minority joint venture partner in both CGC and FLC will be Yufu.
Stone Tan is a public blank check company organized as a corporation under the laws of the State of Delaware. It was formed to effect a business combination with an unidentified operating business having its operations in the Peoples Republic of China.
