 |
CHAMC Disposes of Assets at Premium Price for the First Time
Recently, China Huarong Asset Management Corporation (CHAMC) and Xinjiang Guanghui Enterprise (Group) signed an agreement on stock right transfer.
CHAMC will transfer the 115 million yuan worth of shares of the debt-to-equity enterprise, Xinjiang Shiyue (October) Tractor Manufacture (Group) Company Ltd., entirely to Guanghui Group at the price ratio of 1:1.05. Guanghui Group will pay cash to CHAMC for the equity in two installments in the coming two years. The transfer fund of 52.875 million yuan of the first phase has been paid.
This is said to be the first case of stock right transfer of debt-to-equity enterprise in China, as well as the first case of disposing of assets at premium by an asset management company.
Xinjiang Shiyue Tractor Company is a large tractor producer of the country as well as the largest tractor manufacturer in the northwest region. In recent years, for various reasons, the enterprise has suffered increasing deficits year after year.
After the debt-to-equity transfer conducted by the CHAMC this year, the asset-liability ratio of the enterprise dropped from 79 percent to 52 percent, bringing about a favorable turn in its production and operation. Guanghui Enterprise (Group) is a large civilian-run enterprise with over 4 billion yuan worth of assets.
After purchasing Xinjiang Shiyue Tractor Company, Guanghui put in an additional investment of 200 million yuan for its key business to upgrade its technology and to develop the tertiary industry by making full use of its geographical advantage of being located in downtown Urumqi.
Spokesman for the CHAMC indicated that the stock right transfer this time has not only brought about the preservation and increment of value of State-owned assets, but has also guaranteed the stability and development of the enterprise. Moreover, it has provided the civilian-run enterprise with new opportunity for development.
By PD Online Staff Du Minghua
In This Section
|