Shell to buy into mainland ventures
SHELL Electric Mfg (Holdings) is to acquire 60 per cent stakes in 12 joint-venture companies in Shunde, Guangdong province, for 644 million yuan (about HK$862.96 million at the official rate).
The company said in an announcement last night its 50 per cent-owned subsidiaries had agreed to acquire the 12 joint ventures worth about 1.28 billion yuan.
The remaining 50 per cent of the subsidiaries are owned by Shell's controlling shareholder, the Yung family.
The seller, which claims to be an independent third party, is Eastern Revenue Industrial Co.
The management of the company believes that ''this investment arrangement is appropriate for the financial strength and net asset value of the group''.
Completion of the sale and purchase agreement under each of the agreements of the joint venture is conditional on the company's shareholders and relevant mainland approvals.
The announcement said payment would be made in instalments over two years. Interest will be charged at the six-month US dollar fixed deposit rates.
The value of the acquisitions is based on unaudited financial statements dated July 31 which indicate a net asset value of some 992 million yuan.
A due diligence examination of such financial statements will be conducted by Shell's auditors.