The China Securities Regulatory Commission has approved a 51
percent stake sale of Wuhan Boiler to Alstom for 338.9 million
yuan.
Alstom, French power and transportation equipment maker, will
purchase 151.47 million shares from Wuhan Boiler's parent Wuhan
Boiler Group, the Chinese firm said in a statement.
After the deal, Wuhan Boiler Group will retain a 6.91 percent
stake in the listed Wuhan Boiler.
Wuhan Boiler makes boiler systems for the power industry.
The deal was earlier approved by the Ministry of Commerce and
the state-owned Assets Supervision and Administration Commission,
Shenzhen-listed Wuhan Boiler said in the statement.
According to French newspaper Les Echos, Alstom will make
Wuhan Boiler a base for global exports. Wuhan Boiler will
eventually export a third of its output from a factory Alstom plans
to modernize, said the newspaper.
Alstom earlier said it will introduce new technology and improve
management to boost Wuhan Boiler.
Active in China's power industry, Alstom last year opened Alstom
Beizhong Power Co Ltd, a joint venture with Beijing Heavy Electric
Machinery Works. The company aims to build the joint venture into
one of its most important global manufacturing centers for power
generator equipment.
The joint venture has so far delivered power equipment to major
domestic power companies such as China Guodian Corp and China Power
Investment Corp.
Analysts said the Wuhan Boiler deal underlines foreign
investors' interest in the machinery sector in general, best
illustrated by Carlyle Group's attempts to acquire Xugong Group
Construction Machinery Co Ltd.
(China Daily July 12, 2007)
