Lizhong Wheel to buy 60% stake in Chinese manufacturer
LIZHONG Wheel Group Ltd said its wholly owned unit, Tianjin Lizhong Wheel Co Ltd, had entered into a sale and purchase agreement on June 5 to acquire a 60 per cent stake in Baotou Shengtai Automobile Accessories Manufacturing Co Ltd for 48 million yuan (S$10.4 million).
Baotou manufactures and sells aluminium alloy automobile wheels and accessories. The seller of the stake, Wang Xue, is a Chinese citizen and the sole shareholder and the legal representative of Baotou. He is not related to Lizhong, its directors or its executive management.
"The acquisition is in the company's ordinary course of business which includes the designing, manufacturing and sale of aluminum alloy wheels in the PRC," Lizhong said in a filing on Friday.
"It is also in line with the group's stated intention to build the group's presence and investment in the region through a selective positioning, new investments with a view to broaden the revenue stream of the group and facilitate sustained profitability for the group moving forward."
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
S&P slashes Boeing credit outlook as rating hovers above junk status
Honda to spend US$11 billion on EV strategy in Canada
GlaxoSmithKline sues Pfizer and BioNTech over Covid-19 vaccine technology
Mapletree Industrial Trust Q4 DPU rises 0.9% to S$0.0336
Nasdaq’s profit falls as shaky economy keeps IPO revival elusive
iFast Q1 net profit surges on ePension unit performance