On 9th April, 2016, Hengtong Optic-electric Co., Ltd’s wholly-owned subsidiary---Hengtong Optic-electric International, Ltd (Hereinafter referred to as “Hengtong International”) officially signed an Equity Transfer Agreement (Hereinafter referred to as “the Agreement”) with Power Technologies (Pty) Ltd ( Hereinafter referred to as “Powertech”) in Johannesburg, South Africa. Genliang Cui---Hengtong’s Chairman of the Board, Anmin Gao---Hengtong’s vice-president of international affairs and other Group leaders presented at the ceremony and signed the Agreement. According to the Agreement: Hengtong plans to purchase 75% equity share of Aberdare Cables Proprietary Limited in South Africa and 100% equity share of Aberdare Holdings Europe BV Limited with 430 million RMB. (Hereinafter referred to as “Aberdare Group” together)
It is reported that Aberdare Group is a leading manufacturers of cable products and the overall power solutions provider in Africa and Europe. Its research and development base and manufacturing base are situated in South Africa and Mozambique of Africa, Spain and Portugal in Europe respectively.
The success of cross-border M&A is an important measure for Hengtong to realize its internationalization strategic target. It will accelerate HengTong’s process of overseas market expansion and internationalization. By strengthening cooperation with Aberdare Group, and complementing each other's advantages, Hengtong’s ability of development and profit-making in the overseas market will be further improved. Moreover, through the integration of existing resources, Hengtong will be able to provide the clients in the Commonwealth, the European Union, Africa and central and South America with overall power solutions in the field of power transmission and distribution, railway, petrochemical, mining, ports, airports, construction and housing construction.
After the acquisition, Hengtong will develop and strengthen Alerdare’s ability to develop and manufacture high-end products like submarine cable, submarine optical cable, high voltage cable, ultra high voltage cable and special conductors, etc depending on its matured technology and production capacity. In that way, Alerdare Group will be forged into a significant research and development base to influence countries in Africa, the Commonwealth and the European Union. Besides, Hengtong will assist Alerdare Group to sell its traditional products and high added-value product to the broader overseas markets through its overseas sales channels.
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