13.08.2015

Taiwan exchange for Tat Hong China

Singapore based crane group Tat Hong has applied to the Taiwan stock exchange for a possible listing of its Chinese tower crane business.

The company announced the possible spin-off of the tower crane business last October, See Tat Hong may float its Chinese tower crane business and has now submitted an application for a listing in Taiwan for Tat Hong Equipment Service Company, which is 92.7 percent is owned by Tat Hong Equipment (China) Pte, of which the Tat Hong group owns 88.4 percent – with tower crane manufacturer Yongmao owning the other 11.6 percent. This gives Tat Hong group an 81.9 percent stake in the crane business which it intends to float.

The application is preliminary and may not go ahead, in fact the company appears to be open to alternative opportunities to spin off the business and raise some funds. The current state for the Chinese stock exchange and concern over the economy might also scupper the plan. But if a listing does go ahead it will almost certainly be in Taiwan and it will initially reduce the group’s holding in the Chinese tower crane business by around 20 percent to somewhere in the region of 60 percent.