Xugong Science & Technology Co. said in a statement that it plans to issue 340 million shares at 16.47 yuan (US$2.41) each to parent company Xugong Construction Machinery Group, paving the way for a full listing of China's biggest construction equipment producer, the official Shanghai Securities News reported Friday.
Xugong Construction Machinery Group (Xugong Machinery) will buy the 5.6 billion yuan (US$820.74 million) worth of shares and give Xugong Science a 90 percent stake in Xuzhou Heavy Machinery Co., 50 percent of Xuzhou Hydraulic Component Factory Co., a 60 percent stake in Xuzhou Xugong Specialized Automobile Ltd., a 90 percent stake in Xuzhou Truck-Mounted Crane Co., a 90 percent stake in Xuzhou Xugong Special Engineering Machinery Co. and full stake in Xuzhou Construction Machinery Import & Export Co..
On Wednesday, Xugong Science announced that Xugong Machinery dropped its plan to sell a 45 percent stake in the company to US private equity firm Carlyle Group after three years of negotiating and waiting for Chinese regulatory approval.
For more details, please read the full story in Chinese:
(http://paper.cnstock.com/paper_new/html/2008-07/25/content_64195824.htm)
(China.org.cn by Yan Pei, July 25, 2008)
