CIMC confirms it will buy HK$1.13b stake in Enric Energy

(SHANGHAI) Top global shipping container maker China International Marine Containers confirmed yesterday it had agreed to buy a stake worth HK$1.13 billion (S$219 million) in Enric Energy Equipment Holdings. The deal, if successful, would be the first purchase of a H-share firm, or Chinese company listed in Hong Kong, by an Chinese A-share company listed on a mainland bourse, the Shanghai Securities News said. China International Marine Containers (Group) - through its unit Charm Wise - reached an agreement on July 30 to buy a 42.18 per cent stake, or 190.703 million shares, in Enric Energy from Xinao Group International Investment for HK$5.92 per share, it said in a statement yesterday. The offer price represents a 27.36 per cent discount to Enric's closing price of HK$8.15 on July 30 prior to a trading suspension. Enric said late on Friday that CIMC would make a general offer for all outstanding shares it did not already own in the company for HK$1.55 billion. It said CIMC would make the general offer of HK$5.92 per share in cash for all outstanding shares it did not already own, valuing the company at HK$2.68 billion, after its purchase of a 42.18 per cent stake. CIMC would also offer HK$4.42 in cash for each outstanding share option and it would maintain the listing of the energy equipment maker on the Hong Kong stock exchange. Chinese companies, eager to expand beyond their home turf, have been targeting overseas firms to build a global footprint. But the path to expansion is often bumpy. Chinese TV maker TCL Corp, for example, bought a cellular phone businesses from RCA-brand owner Thomson and Alcatel, and China's top PC maker Lenovo Group, bought IBM's PC-making unit in 2005. China's top appliance maker Haier Group also aims to become a global brand, but suffered a setback last year when its US unit failed to win a bidding war for troubled US appliance giant Maytag. In October, TCL Multimedia Technology Holdings conceded to substantial losses due to poor business performance in Europe and said it planned to wind down the operation and lay off an undisclosed number of employees. - Reuters