CET pays $66.6m for PC disk-maker
State Council-owned China Everbright Technology (CET) is to exchange $66.62 million in new shares for a computer floppy disk company.
CET plans to issue 32.5 million new shares at $2.05 each, a 1.2 per cent premium to Friday's closing price of $2.025.
The shares would be sold to privately owned G Yean Group in exchange for mainland-based floppy disk maker Transan, CET said.
G Yean - incorporated in Hong Kong with shareholders from China and Taiwan - already owns 8.3 per cent of CET. The deal will lift its stake to 10.1 per cent.
It gave CET a guarantee that Transan would be profitable for the three years to December 1999. Transan has had a volatile earnings records in the past two years.
It is expected to make a $12 million net profit this year, $14 million next year and $16 million in 1999.
Last year's net profit was more than halved to $10.15 million, from $22.3 million the previous year due to 'intense competition'.
For the six months to June, net profit stood at $6.46 million.