Altech - Youbisheng approval of Altech Board Nominees
YAG shareholders, amongst other resolutions, have also approved the change of company name to Altech Advanced Materials AG; a capital increase of up to 63,102,080 Euro; and the increase in size of its supervisory board to five members. Already one Altech nominee Mr. Dieter Rosenthal, has been voted on to the supervisory board, with a plan to have two more nominees of Altech nominated in due course.
Each of the above actions are conditions precedent to the Company's agreement to acquire 29% of YAG, and to the Company's agreement to sell to YAG a non-exclusive right for it to acquire up to 49% of the Altech's HPA project for US$100 million. The agreements are the basis of Altech's European equity strategy, whereby investors will be provided a means to acquire a shareholding in up to a 49% direct interest in the Company's high purity alumina (HPA) project via subscribing to shares in Frankfurt Stock Exchange listed YAG (now approved to be renamed Altech Advanced Materials AG) (refer ASX Announcement of 18 July, 2019 for details).
About Altech Chemicals Ltd
HPA is a high-value, high margin and highly demanded product as it is the critical ingredient required for the production of synthetic sapphire. Synthetic sapphire is used in the manufacture of substrates for LED lights, semiconductor wafers used in the electronics industry, and scratch-resistant sapphire glass used for wristwatch faces, optical windows and smartphone components. There is no substitute for HPA in the manufacture of synthetic sapphire.
Global HPA demand is approximately 25,315tpa (2016) and demand is growing at a compound annual growth rate (CAGR) of 16.7% (2016-2024), primarily driven by the growth in worldwide adoption of LEDs. As an energy efficient, longer lasting and lower operating cost form of lighting, LED lighting is replacing the traditional incandescent bulbs.
Altech Chemicals Ltd