(Yicai Global) June 19 -- CITIC Heavy Industries Co. [SH:601688] (CITIC) will buy a controlling stake in a maker of core components for new energy buses to help it gravitate into the new energy car industry.
The state-owned listed company under CITIC Group will acquire Tianjin Santroll Electric Vehicle Technology Co., Ltd. (TS) by issuing shares to purchase assets and raising matching funds, thereby become its controlling shareholder, CITIC announced June 16, adding the detailed plan is still in the discussion and demonstration phase.
TS is a private firm that provides system solutions and core components for electric vehicles and hybrid vehicles, public information shows. Its main customers include Zhengzhou Yutong Bus Co. [SHA:600066], Zhongtong Bus Holding Co. [SHE:000957] and other new energy bus manufacturers.
Auto parts manufacturer Wanxiang Qianchao Co. [SHE:000559] is also a TS shareholder. The company invested CNY110 million in cash for TS' capital expansion and now holds a 10 percent stake in it.
CITIC Heavy Industries is the world's largest manufacturer of mining and cement equipment and one of China's biggest heavy-duty machinery manufacturers.
KEYWORD: M&A, CITIC, construction machinery, new products, electric-powered vehicle, auto Parts.