CIMC to add assets to listed unit
China International Marine Containers (Group), the country's largest shipping container maker, said it planned to inject an HK$8.5 billion tank equipment business into its Hong Kong-listed unit Enric Energy Equipment Holdings.
The Shenzhen-listed firm last night said it would sell its 100 per cent stake in Sound Winner Holdings and an 80 per cent stake in a company called Full Medal to Enric for HK$8.50 billion to aid the deal.
Enric will buy the remaining 20 per cent in Full Medal from its joint-venture partner PGM Holding which is an independent third party.
Enric, which suspended its shares from trading on September 3, will settle the deal by issuing 398.5 million new shares and 1.62 billion convertible preference shares at HK$4.49 each, according to a statement.
CIMC will see its stake in Enric rise to 54.27 per cent from 41.55 per cent. The stake will increase to 84.17 per cent if the preference shares are fully converted.
'The asset restructuring will help the company establish a single platform to run its tank equipment business which will improve marketing, procurement and research and development,' CIMC said.
Sound Winner, through its subsidiaries, makes petrochemical-related tank equipment and cryogenic tank equipment. It reported an unaudited post-tax profit of 327 million yuan (HK$372.9 million) last year and 282 million yuan in 2006.
Full Medal, which through Netherlands-based Holvrieka Holding makes process and storage tanks for breweries, soft drink producers and the chemical industry, reported an unaudited post-tax profit of Euro7.9 million (HK$86.9 million) last year.
Holvrieka is part of Burg Industries' business which CIMC bought last year. Enric will change its name to CIMC Enric Holdings after the transaction.
