Hainan Mining to buy fluorite firm Fengrui in ~$201M deal at 176% premium
What's the deal? Hainan MiningDealroom has a profile for this one. Try Dealroom → will acquire a 69.9% stake in Luoyang FengRui FluorineDealroom has a profile for this one. Try Dealroom → for US$184.3M, using a mix of new shares and cash. The deal values the fluorite miner's full equity at US$287.4M — a 175.81% premium over its book net assets.
What each side does: FengRui develops fluorite mines and produces fluorite powder, lump ore, and anhydrous hydrogen fluoride, with a 30,000-tonne hydrogen fluoride line. Hainan Mining runs iron ore and lithium operations and sees synergies in mining, processing, and sales.
Why now? The purchase extends a push into fluorite. Hainan Mining already bought a 15.79% stake for US$41.3M in 2025; this deal lifts its holding to roughly 85.69%.
The numbers: FengRui posted 2024 revenue of US$91.8M, total assets of US$225.5M, and net assets of US$38.8M. Hainan Mining held US$378.1M in cash as of June 30, 2026, covering the cash portion.
The terms: Shares will be issued at US$1.18 each. A concurrent raise of up to US$105.6M will fund the cash consideration, working capital, loan repayment, and fees. Sellers signed a performance-compensation pact covering 2026 to 2028.
What could go wrong? FengRui's hydrogen fluoride line sat idle for much of 2025, stalling revenue, and the product is classed as "high-pollution, high-environmental-risk." The target also carries disclosed property-rights flaws on some land and mining rights, plus client concentration of 44.92% in 2025. The deal still needs Shanghai Stock ExchangeDealroom has a profile for this one. Try Dealroom → approval and China Securities Regulatory CommissionDealroom has a profile for this one. Try Dealroom → registration.
The signal: Fluorite supply is tightened by mine-safety and environmental rules, and prices firmed earlier this year. But recent signals are mixed — rising imports, domestic restarts, and soft downstream demand are pressuring prices, so the steep valuation is not a sure bet.
Read more: minichart.com.sg
Image credit: subarcticmike
