Avic International to Increase Stake in KHD, Make Buyout Offer
Avic International Holdings Ltd. (161), a Hong Kong-listed unit of China’s biggest aerospace company, said it will boost its holding in German industrial-plant builder KHD Humboldt Wedag International AG (KWG) and make a buyout offer.
The Shenzhen, China-based company will buy 19 percent of KHD from 12 sellers for 61 million euros ($83 million), increasing its stake to 39 percent, according to a Hong Kong stock exchange filing yesterday. MFC Industrial Ltd. is one of the companies disposing of KHD shares.
Avic also said it will join companies owned by Singaporean businessman Yap Lian Seng to make an offer for KHD at 6.45 euros a share, or a total consideration of 195.5 million euros. Yap will own 58 percent of KHD and Avic 42 percent if all holders accept the offer.
KHD jumped 24 percent to close at 6.31 euros on Frankfurt’s Xetra exchange after the offer was announced.
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