Catic Shenzhen nears completion of takeovers
Catic Shenzhen Holdings, a Hong Kong-listed electronics manufacturer, yesterday said its acquisition of controlling interests in 12 companies from parent AVIC International Holding and related parties was almost complete.
The businesses Catic Shenzhen is acquiring include trading and logistics, overseas engineering and commercial properties.
The acquisition is expected to be completed by the end of next month.
Chairman Wu Guangquan said he expected this year's financial results to outpace last year's.
He said the company would continue to acquire more assets from its parent company, but did not elaborate.
In December, the Shenzhen-based firm said it was buying trading, logistics, manufacturing and real estate assets from its parent and its units for as much as 4.57 billion yuan (HK$5.58 billion).
Following an assessment by the State-owned Assets Supervision and Administration Commission of the State Council, Catic Shenzhen yesterday said the transactions would total 4.16 billion yuan.
The firm said it would issue new domestic shares and perpetual subordinated convertible securities (PSCS) to pay for the acquisitions from its parent, which is the import and export unit of Aviation Industry Corp of China.
Catic Shenzhen said that when the deals are completed, its total issued share capital base would rise to about 1.11 billion shares, from the current 277.7 million.
AVIC International and AVIC International Shenzhen will hold equity stakes of 39.37 per cent and 35.63 per cent respectively in Catic Shenzhen.
AVIC International will also own 2.78 billion yuan worth of the company's PSCS.
The parent will later be able to convert the PSCS into shares at a conversion price of HK$4.03 per share.
The amount, in US dollars, of Catic Shenzhen's import and export sales volume in 2007