Hubei Dinglong Chemical Co Ltd (Hubei) announced it completed the acquisition of an 80 percent stake in Zhuhai-based Mito Color Imaging Co., Ltd. (Mito) on 29 September. 
As a result of the acquisition, the company holds a 100 percent stake in Mito Color Imaging. Hubei Dinglong Chemical will complete the equity registration procedures for issuance of 14.50 million shares to Mito shareholders.
In December 2012, Hubei acquired a 20 percent stake in Mito for RMB 37.4 million ($6.1 million/€4.5 million) and in February 2013 raised a credit line of RMB 105 million ($17.2 million/€12.6 million) with the Wuhan Branch of China CITIC Bank.
In May 2013, Hubei announced its intention to issue new shares to raise funds for the acquisition, and in September received approval from the China Securities Regulatory Commission on the new shares issuance for equity shares acquisition and fundraising.
Hubei Dinglong Chemical manufactures Charge Control Agent (CCA), Chemically Processed Toner (CPT), and supplies specialised colorants globally, as well as being a major supplier to several Fortune 500 companies. Mito has a production capacity of 200,000 colour cartridges per month and extensive sales channels.
A person familiar with the deal said that the acquisition of Mito by Hubei will provide Hubei with a more “verticalised” route to market for finished products and chemical toners.