DJ Yulong to Buy Michelangelo's Crucifixion Painting for $75 Million in Stock -- Update
By Colin Kellaher
Shares of Yulong Eco-Materials Ltd. (YECO) surged more than 25% on Monday after the company said it agreed to buy Michelangelo's "Crucifixion" painting for $75 million in restricted stock.
Yulong, which in October completed the acquisition of the Millennium Sapphire gem for $50 million in restricted stock, said it will issue 7.5 million restricted shares valued at $10 apiece to acquire the Michelangelo work.
Yulong said the painting is one of several Michelangelo did for his friend and confidante, Italian Renaissance poet Vittoria Colonna. The company said the work is currently owned by Ridgway Mitchell Smith, a descendant of Italy's powerful Medici family, to whom Ms. Colonna gave her collection.
Yulong said the acquisition is contingent upon obtaining an appraisal of at least $75 million for the painting, along with authentication letters and other verification documents from the seller. The parties have 30 days to complete the deal, the company added.
Yulong, previously a producer of fly-ash bricks based in the city of Pingdingshan in Henan Province, China, in August announced plans to acquire the Millennium Sapphire and take it on a tour of museums around the world. The company, which has since sold off its operations in China and moved its headquarters to New York, is in the process of changing its name to Millennium Enterprises Ltd.
Yulong said it plans to use its stock as currency to acquire rare art works, boost their value through exhibitions and media exposure, and "open the opportunity of shared ownership of its acquired masterpieces to anyone with a brokerage account."
Shares of Yulong, which closed Friday at $5.10, rose 26.4% to $6.60 in early trading Monday. The stock, which traded around $1.38 before the sapphire deal was announced in August, has been on a roller-coaster rise since then, trading as high as $17.87 on Oct. 18.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
November 19, 2018 10:35 ET (15:35 GMT)
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