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China International Marine Containers (CIMC), the country's largest shipping container manufacturer, has acquired a 42.1 per cent stake in Hong Kong-based Enric Energy Equipment Holdings Ltd for HK$1.13 billion (US$144.33 million).
It is the first time an A-share company has purchased an H-share firm, reports China Daily.
The deal comes after mainland-listed CIMC reached an agreement at the end of last month to buy 190.7 million shares from Xinao Group International Investment Limited. Xinao originally owned a 51.79 per cent stake in Enric, through its wholly-owned subsidiary Charm Wise Limited.
CIMC said in the statement that it would make a general offer for all outstanding shares it did not own in the company. The transaction is expected to expand CIMC's business into the gas and energy equipment sector and greatly improve the company's canned transportation production line, after it indirectly acquired 80 per cent of Burg Industries BV on July 28.
"The deal is expected to speed up CIMC's industrial structure transition and greatly improve its logistics services to energy end-users," said Huang Dongsheng, an analyst at Changjiang Securities in the report.
Enric, a company listed on the Hong Kong Stock Exchange in October 2005, had net assets of CNY505.52 million (US$66.74 million) at the end of 2006 and sales revenue of CNY769.65 million.
In 2006 CIMC's revenue amounted to CNY33.2 billion and its total assets reached CNY23.3 billion, the report added.
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