HomeChina Stock News Legend Holdings unit makes strategic investment in fiberglass giant
Legend Holdings unit makes strategic investment in fiberglass giant
Written by Administrator
Tuesday, 02 January 2007
BEIJING, Jan. 8 (InfoChina) – Hony Capital, under the flag of Legend Holdings, parent company of Lenovo Group (HK:0992, LNVGY.PK), will make strategic investment in Zhejiang-based fiberglass producer Jushi Group Co., Ltd. in the latter’s capital expansion scheme.
Jushi Group will increase its registered capital to 150 million US dollars through floating additional shares at 2.67 US dollars per share. Upon completion of capital expansion, Hony Capital will hold 18.5 percent stake in Jushi Group, while China Fiberglass Co., Ltd (SH: 600176), the parent company of Jushi Group, will still hold the largest stake of 51 percent.
The raised capital will be invested in a 120,000-ton fibreglass project, which is expected to be completed in August 2007 and produce products for export to Europe and the US.
It is learned that Jushi Group includes almost all the main business of China Fiberglass and contributes to more than 90 percent of the parent’s total profit.
Hony Capital, focusing on privatization and restructuring of state-owned enterprises, has gained rich corporate restructuring experience in such industries as glass and medicine.
A source with China Fiberglass disclosed that Hony Capital is only a financial investor and is restrained from selling its stake in Jushi Group to other international fiberglass giants. (Edited by Chen Dongyi,
)
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