Legal and structure

Why is Asian Bamboo listed in Germany?

There are three key reasons for our listing in Germany:

  • The Frankfurt Stock Exchange is one of the largest stock exchanges in the world and has a solid reputation for good corporate governance.
  • There is a lot of investor interest in sustainable business models and agriculture/forestry companies in Germany and Europe.
  • We were given attractive terms and a clear path towards the IPO by our underwriter – Sal. Oppenheim.

Why do you lease the plantations and how are the leases structured?

As all land in China is owned by the state, there is no possibility of owning the plantations. There is a defined legal framework for the leases and the business model is encouraged by the Chinese government. All major Chinese agriculture and forestry companies are operating in a similar way to us.

Our legal counterparty is a collective of farmers represented by a village committee. Under current arrangements, we make an up-front payment of around EUR 5,400 per hectare for a 20-year lease. Around 20-30% of the total payment is paid at the time of signing the contract and the balance when the harvesting rights are transferred. In addition, we offer the farmers harvesting work at the plantations for which they receive a salary.

Who owns Asian Bamboo?

The Company’s founder, Mr. Lin Zuojun, owns around 48% of the shares through his wholly owned entity Green Resources. The balance of the shares, around 52%, is owned by institutional and private investors.

Legals | © 2015 Asian Bamboo AG

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