CHINA Everbright Holdings is embarking on its third acquisition venture this year by taking a 45 per cent stake in Hanwah Holdings, a loss-making television and audio equipment maker. The Hong Kong arm of the mainland-owned financial and property development giant, China Everbright Group, will pay about $242 million for the stake. Under the agreement, China Everbright will subscribe for about 439.38 new shares in Hanwah at 55 cents each. The price represents a 32 per cent discount to Hanwah's closing price of 81 cents on Monday, and a 74 per cent premium over its net tangible asset value of 31.7 cents on March 31. The subscription may lead to a general offer for all of the outstanding shares of Hanwah at also 55 cents each. Hanwah's controlling shareholders, chairman Yiu Kin-wai and his associates, have undertaken to maintain their shareholding in Hanwah at between 20 and 30 per cent for two years after the takeover. To fulfil the undertaking, the controlling shareholders, now holding 62.3 per cent of Hanwah, will place 41.48 million existing shares, or eight per cent, of the company to independent investors. As the end of March, Hanwah had about $335 million of bank borrowings. Based on its records, Hanwah is expected to report an unaudited loss of at least $40 million for the six months to September 30. The proposed takeover of Hanwah is part of China Everbright's expansion in the financial and securities business in Hong Kong. Two months ago, it consolidated its presence in Hong Kong's financial market by acquiring a 20 per cent stake in the recently-listed International Bank of Asia. In March, China Everbright took 51 per cent control of listed property firm Newfoundland International for $72.8 million and renamed it as China Everbright International (CEI). CEI was suspended from trading on the stock exchange yesterday due to market speculation. The company said in an announcement that although it was keen to develop a diversified business base, it did not have any specific acquisition plan nor it had plans to raise additional funds from the market. China Everbright's mainland parent, China Everbright Group, is a diversified conglomerate whose main businesses include financial and investment services, leasing, trading, securities, precious metals trading, import of technology and facilities and property development. It is headed by Qiu Qing, a former vice-governor of the central People's Bank of China. Hanwah's recent record has been tarnished by poor results and a public censure by the stock exchange. The company posted a loss of $35.19 million for the year ended March 31 due to the depreciation of the yuan. It was at the centre of a controversy in May, when Mr Yiu and managing director Tony Yuen were publicly censured by the exchange for a scheme which meant that shares ostensibly in public hands were in fact subject to their control.