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Shanghai Shenda holds private placing
Posted on Friday, 19 May 2017 09:19
Shanghai Shenda has announced a private placing to raise up to CNY 2.16 billion (USD 312.79 million), representing a 16.7 per cent enlarged stake, from no more than ten investors.

Closing of the deal is subject to the go-ahead from the State-owned Assets Supervision and Administration Commission and the China Securities Regulatory Commission.

Shanghai Shenda Group, which currently controls 31.1 per cent of the yarn fabric maker, will also subscribe for some of the new shares to maintain its holding.

As agreed, the public company will invest the proceeds in Auria Solutions, a newly formed subsidiary of car parts manufacturer International Automotive Components, via a USD 399.00 million private placing announced last December.

The deal has already been approved by China’s Ministry of Commerce and National Development and Reform Commission, and Shanghai Shenda is now on course to take a 70.0 per cent share of the Luxembourg-based holding company’s enlarged capital.

In the meantime, Auria Solutions is in the process of absorbing International Automotive Components’ car parts manufacturing assets in countries such as the US, South Africa and Poland.

The restructuring deal, which has received the green light from the US Federal Trade Commission, is worth about USD 399.00 million.

In another transaction last month, Shanghai Shenda placed its real estate development unit Shanghai Shenda Real Estate Development Operation on the Shanghai Union Property Exchange for sale at a minimum price of CNY 130.66 million.

The Shanghai Stock Exchange-listed group posted revenue of CNY 8.68 billion in the 12 months ended 31st December 2016, up 12.6 per cent on the CNY 7.71 billion in the previous year.

Net profit was CNY 194.18 million during the period, an increase from CNY 169.96 million in 2015.

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