China's Zoomlion Heavy Industry plans HK unit stake buyback
SHANGHAI Dec 31 (Reuters) - Chinese construction equipment maker Zoomlion Heavy Industry Science and Technology Development Co said it would buy back a combined 40.7 percent stake in its Hong Kong unit from shareholders for $235.8 million.
Zoomlion said in a late Friday filing to the Hong Kong and Shenzhen stock exchanges that repurchasing the shares would help improve business integration with its Hong Kong unit Zoomlion Hong Kong.
As part of the deal, Zoomlion will buy back a 22.84 percent stake in Zoomlion Hong Kong from shareholders including a Goldman Sachs Group Inc subsidiary for $132.5 million, and a 17.84 percent stake held by Sunny Castle, a financing vehicle owned by Hony Capital, for $103.3 million.
The proposed deal, approved by Zoomlion's board on Friday, will be paid in cash and funded by the company's internal resources, the Hong Kong statement said.