Top Biz News

Dutch purchase draws investors to CIMC

By Jianguo Jiang (China Daily)
Updated: 2006-12-09 09:47

"Burg will sell its tank container business to facilitate our acquisition," Yu said.

CIMC's yuan-denominated A shares gained 6.3 percent to 17.65 yuan (US$2.23) at the 11:30 am trading pause in Shenzhen after earlier jumping 7.6 percent. The company's B shares rose 2.9 percent to HK$14.70 (US$1.88).

A shares can be bought by domestic investors and qualified foreign institutional investors. There are no such restrictions on the ownership of B shares.

The acquisition will be made through a 60 million euro (US$79.80 million) venture formed by CIMC's Hong Kong unit CIMC Tank Equipment Investment Holdings Co with one of the shareholders of closely held Burg, according to the statement. The deal, subject to government approval from China, Germany and the Netherlands, is scheduled to be completed by March 31, China International Marine said.

CIMC said its main shareholders include Hong Kong-listed COSCO Pacific Ltd, Asia's third-largest port operator, and China Merchants Holdings (International) Co, a State-owned port operator.

COSCO Pacific's shares rose 0.9 percent to HK$17.16 (US$2.20) as of 12:30 am and China Merchants Holdings' shares jumped 9.4 percent to HK$31.35 (US$4.02).