SHOUGANG Concord's stake in construction firm, Hoi Sing Holdings is being bought out for $40.9 million.
Far East Aluminium (Holdings) is teaming with Shenzhen Concord Enterprises Co, Paul Y. ITC, CEF Holdings and Pacific Century to buy the construction firm.
Hoi Sing yesterday announced a group operating loss of $139.5 million for the year to December.
Far East Aluminium director Ricky Liu Chi-keung said the purchase would be made through a special-purpose company Fortune Leader, 33 per cent-owned by Far East Aluminium, 33 per cent by Shenzhen Concord, 12.1 per cent by Paul Y. ITC, 12.1 per cent by CEF Holdings, and 9.8 per cent by Pacific Century Securities.
Under the purchase agreement, Fortune Leader would buy 107.7 million Hoi Sing shares from Shougang Concord, and 16.78 million warrants in Hoi Sing, at 38 cents a share and $1 for the warrants, Mr Liu said.
The warrants carried the right to subscribe for 16.78 million shares at $1.28 a share until March 31 next year, he said.
Hutchison Whampoa and CEF Holdings each held 15 per cent of Shenzhen Concord, and Cheung Kong held 20 per cent, said Hoi Sing, Shougang and Fortune Leader in a joint statement.
