June 4, 2010 (FinancialWire) — Origin Agritech Ltd. (NASDAQ: SEED), a Chinese supplier of hybrid and genetically-modified crop seeds, said it has acquired a 80.0% ownership stake in Shandong Kunfeng Biochemical Ltd., a agricultural chemical producer in Shandong, China, for RMB 14.96M. According to Origin, the acquisition is a continuance of its corporate strategy to maximize its portfolio and focus on markets and segments where full synergies can be realized.

Origin said it plans to divest its minority stake in Biocentury Transgene, and that it will utilize proceeds to invest in the developing agro-chemical industry.

The company said that its chemical products are not only compatible with the genetically-modified crop seed products, but allow for significant cross-selling potential through Origin’s existing nationwide distributor network to 200 million small farms in China.

China-based Origin was founded in 1997 as an agricultural biotechnology company specializing in research, development and production. Origin develops, grows, processes, and markets hybrid crop seeds to farmers throughout China and parts of Southeast Asia via a network of roughly 3,800 first-level distributors and 65,000 second-level distributors and retailers.

Origin possesses a pipeline of genetically modified seed products including glyphosate resistant corn and Bt Corn.

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