China Aerospace International Holdings Limited (CASIL) has acquired a majority 55% stake in Shenzhen Rayitek, a specialist in developing polyimide materials for high-tech industries.
CASIL, via its wholly-owned subsidiary CASIL New Century Technology…
China Aerospace International Holdings Limited (CASIL) has acquired a majority 55% stake in Shenzhen Rayitek, a specialist in developing polyimide materials for high-tech industries.
CASIL, via its wholly-owned subsidiary CASIL New Century Technology Development, won an open tender conducted on the Qingdao Property Rights Exchange and subsequently entered into three share transfer agreements to purchase a controlling stake of Shenzhen Rayitek.
Under the agreements, CASIL acquired the 39% holding of Chinese high tensile steel manufacturer Guangdong Huamei for Yn44.7m (US$6.9m), the 10% stake held by investment group Shenzhen Huamei for Yn11.46m (US$1.77m), and the 6% shareholding owned by Hangzhou Taida, a Chinese composite materials processor, for Yn6.88m (US$1.06m).
The value of the shareholdings was determined by China United Assets Appraisal Group, which had been commissioned by Guangdong Huamei.
CASIL has also agreed to advance Shenzhen Rayitek approximately Yn100m (US$15.47m) by the end of 2011 as well as guarantee the company’s Yn60m (US$9.28m) worth of loans with the Bank of Hangzhou.
Founded in 2004, Shenzhen Rayite is a Sino-foreign joint venture set up to develop new materials in polyimide that are widely adopted in the aerospace, microelectronics and nanotechnology industries.
CASIL said that the reason behind the acquisition was to help develop its new materials business. CASIL added that this was seen as one of the core segments of parent company China Aerospace Science and Technology Corporation’s aerospace technology applications business .
Li Honqjun, executive director and president of CASIL, commented: “With the support of our major shareholder, CASC, the company, through the acquisition of Shenzhen RayiTEK, has made the first step in expanding into the polymer new materials business. Shenzhen RayiTEK’s business is expected to grow rapidly during the next few years and to become one of our driving forces by means of competitiveness and profitability. The acquisition is also expected to generate synergy for the company’s high-tech manufacturing business.”
