Business
Neo Completes Sale of Majority Equity Interest of China Rare Earth Separation Assets
Neo Completes Sale of Majority Equity Interest of China Rare Earth Separation Assets Ca...
About this update from Neo Performance Materials, Inc.
[{"type":"text","content":"\n\n\n\n Neo Completes Sale of Majority Equity Interest of China Rare Earth Separation Assets\n \n\n /* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n \n\n\n\n\n\n Canada NewsWire\n \n\n\n\n\n\n TORONTO\n \n\n ,\n \n\n April 1, 2025\n \n\n /CNW/ - Neo Performance Materials Inc. (\"\n \n Neo\n \n \" or the \"\n \n Company\n \n \") (TSX: NEO) announced today that it has completed the sale to an affiliate of Shenghe Resources Holding Co., Ltd. (\"\n \n Shenghe\n \n \") of (i) 86% of the equity interest in Jiangyin Jiahua Advanced Material Resources Co., Ltd. (\"\n \n JAMR\n \n \") for USD\n \n $24.6 million\n \n cash; and (ii) 88% of the equity in Zibo Jiahua Advanced Material Resources Co., Ltd. (\"\n \n ZAMR\n \n \") USD\n \n $3.4 million\n \n cash, amended from the original agreement to sell 98% of the equity interests of ZAMR (collectively, the \"\n \n Transactions\n \n \"). JAMR sales proceeds represent a 10.6x multiple on average trailing five-year EBITDA for the facility. The ZAMR facility was valued using an asset-based approach, as the facility was closed in the second quarter of 2024.\n \n\n\n\n\n\n\n\n\n The completion of the sale of its majority equity interests in JAMR and ZAMR marks another key milestone in Neo's operational transformation, as the Company continues to streamline its business globally and optimize its asset portfolio to support its long-term scale and growth ambitions.\n \n\n\n \"The sale of our majority interest in JAMR and ZAMR contributes to the streamlining of our business, while ensuring that our clients continue to benefit from this strategic partnership. Shenghe is a rare earth industry leader and has a record of commercial excellence by driving value from midstream assets. Shenghe's established global sourcing platform allows for continued growth of JAMR and ZAMR while we shift Neo's focus to downstream high-margin products,\"\n \n said\n \n Rahim Suleman\n \n , President and Chief Executive Officer of Neo.\n \n\n\n \"We look forward to building on Neo's growth of JAMR and ZAMR. Both will be integrated into our existing midstream assets ...