MAE keen for mainland break

Transformer-maker MAE Holdings plans to fund a possible investment in a Shanghai multi-media company with $31.5 million raised through a share placement.

Chairman Eric So Hin-wah yesterday said the company was in preliminary discussions on 'any form of investment' in the mainland firm.

Any investments would cost MAE up to $10 million, he said.

'We may supply products to or buy a stake in the mainland firm. It all depends on negotiations,' he said.

MAE agreed to sell 30 million new shares, or 16.7 per cent of expanded share capital, to more than six independent individuals or institutional investors.

The shares were sold at $1.10 each, or a 12 per cent discount to Friday's closing price of $1.25.