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SCMP Reporter

Catic (HK), the Hong Kong investment arm of China National Aero-Technology Import and Export, has taken a controlling interest in loss-making Far East Aluminium Holdings.

 After $50.8 million in share buys, Catic will own 51 per cent of Far East Aluminium while Cheung Kong (Holdings) will own 9.14 per cent.

 Through wholly owned units, Catic will buy 187.34 million Far East Aluminium shares, while Cheung Kong will buy 33.56 million shares, triggering a cash offer for the remaining share capital in the aluminium-products firm.

 The acquisition price for the Far East Aluminium shares was 23 cents each.

 Far East Aluminium shares were suspended on April 9 at 25 cents.

 According to a statement by Far East Aluminium, the net asset value per share of the company was 29.4 cents, taking into account an unaudited loss of $145 million for the 11 months to November 30.

 The 60.14 per cent stake sold is the entire holding in Far East Aluminium owned by Panorama International, a unit of Far East Wagner, which is in turn a consortium which includes Cheung Kong and Aviation Industries of China.

 Panorama had to sell after pledging the shares to CEF (Capital Markets) in return for a loan of $280 million which was used to buy the stake in 1995.

 Panorama's only asset was the stake and with Far East Aluminium's share price plunging, there was no choice but to sell to repay the loan, according to the statement.

  Far East Aluminium designs, manufactures and installs fabricated aluminium products for buildings, including curtain walls and cladding systems.



Deal puts Catic in control of Far East