Tiny Bolton makes a move on Chinese cable company

A TINY British property company, Bolton Group (International), is to take its first step towards becoming a dedicated Chinese investment vehicle by buying the Hangzhou Cable Co (HCC) next month.

The move comes after China Strategic, the Hong Kong-listed China investment group, bought 27.2 per cent of Bolton shares last year.

Last month, Bolton, whose chairman is China Strategic head Oei Hong Leong, announced it was to de-merge its United Real Estate (URE) property portfolio, raising GBP1.5 million (about HK$17.65 million), and 'return the group to its manufacturing roots and to use its expertise to link western technology with China's manufacturing base'.

The first acquisition is to be a purchase, for a mixture of cash and shares, of HCC, a wholly owned subsidiary of China Strategic.

It is expected a similar investment will soon be made in a telecommunications project.

HCC manufactures heavy cable, primarily for the power industry, although its application extends to medical appliances, the automotive industry, mining and telecommunications.