China Resources Enterprise To Acquire Majority Stake In CR Jinhua

China News
China Resources Enterprise To Acquire Majority Stake In CR JinhuaHong Kong-based China Resources Enterprise Ltd. has announced its plan to acquire a majority stake of 51 percent in China Resources Jinhua Co. Ltd (CR Jinhua) through China Resources Light Industries and Textiles (Holdings) Cos. Ltd, its wholly owned subsidiary, from the China Resources National Corporation (CRNC), its ultimate shareholder.”The acquistion of CR Jinhua will establish an important milestone for the development of our textile business,” said Frank Ning, chairman, China Resources Enterprise Ltd. “CR Jinhua will provide the business with an excellent platform for consolidation, further acquisition and future fund raising. There will also be a substantial boost to our production capacity following the acquisition to cope with rising industry demand,” Ning said.The shares to be acquired represent the entire shareholding of CRNC in CR Jinhua, and are state-owned. The acquisition, which will be funded by internal resources, will involve a cash consideration of RMB163. The transaction is subject to relevant PRC regulatory approvals.February 2003