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SINGAPORE: A unit of Chinese conglomerate Sinohit has bought a 29 per cent stake in locally-listed marine supply company Sinwa.
The stake comes in two portions - a 26.38 percent shareholding from Sinwa's executive chairman and CEO Sim Yong Teng and his 91.4 percent owned investment firm Evenstar Investments, plus a 2.62 per cent stake from another shareholder, Kim Seng Holdings.
Sinohit Offshore Engineering (Liao Ning) will be paying a minimum initial price of 38 cents per share or S$24.48 million.
The maximum price is capped at 54.48 cents per share or S$35.12 million, subject to the completion of the financial year-end audit.
The deal is part of Sinohit's overseas expansion plans, which sees Singapore serving as an important base. There will be synergies expected for both companies.
Sinohit will benefit from Sinwa's database of shipowners and Australian business contacts, while Sinwa will be tapping on the Chinese company's experience and domestic connections.
Mike Sim, CEO, Sinwa, said: "Sinwa can leverage on them on the offshore business and on the financial leasing business as well. Also in my China operations, I can use their 'guanxi' - the connections - and their financial strength to even build my Chinese operations and diversify, and even expand further into this."
Sinohit Offshore Engineering is a subsidiary of the Beijing-based Sinohit Group, a private company with interests in offshore marine engineering, steel mills and industrial park and port development. Its business partners include China oil giant Sinopec and Sembcorp Marine. - CNA/vm
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