Slightly surreal

23 November 2018 By Sharon Lam Follow @sharonlamhk

Chinese waste hauler Yulong Eco-Materials has decided to become an owner of paintings and gems instead. It’s paying $75 mln for the Italian master’s “Crucifixion” after it bought a $50 mln sapphire. Bringing art investing to public markets is a risky form of creative destruction.

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Yulong Eco-Materials said on Nov. 19 it had agreed to buy Michelangelo's “Crucifixion” for $75 million as part of a new business plan to invest in art and jewelry, adding that it would issue 7.5 million restricted shares valued at $10 apiece to pay for the painting.

The company said on Oct. 17 that it had bought a 61,500-carat sapphire for $50 million. In separate documents submitted to U.S. securities regulators, it said it was selling its main Chinese waste management and building materials business to directors of the company for $15 million.

It funded the sapphire purchase by issuing 25 million restricted shares at $2 each. It plans to take the gem, the so-called Millennium Sapphire, on a tour of museums and feature it in films.

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