10.04.2008

Chinese crane maker to expand

Crane maker Shanghai Zhenhua Port Machinery, one of the world’s largest quayside crane manufacturers has issued a statement to the Shanghai stock exchange saying that it is planning to issue RMB2 billion($286 million) worth of new shares in a private share placement to acquire control of two business units – a sales and service operation and an industry service supplier from its state-owned controlling shareholder, China Communications Construction Co.

CCC will subscribe to the additional shares which will be priced at RMB17.78 each or the average price over the past 20 trading days. The company's A-shares closed at RMB15.49 on March 27 before trading was suspended pending this statement.

CCC's stake in Zhenhua will be raised to 45.18 percent from its current 43.26 percent following the share placement. The deal is still subject to the approval from its shareholders and the regulator.