Electric Equipment Firm Far East Smarter Energy, Its Main Shareholder Buy Airport Facility Builder
Xu Wei
DATE:  Jul 06 2017
/ SOURCE:  Yicai
Electric Equipment Firm Far East Smarter Energy, Its Main Shareholder Buy Airport Facility Builder Electric Equipment Firm Far East Smarter Energy, Its Main Shareholder Buy Airport Facility Builder

(Yicai Global) July 6 -- Electric equipment firm Far East Smarter Energy Co. [SHA:600869] and its controlling shareholder will spend more than USD205.8 million (CNY1.4 billion) to acquire an airport construction and airport smart energy control company in a bid to gain a competitive edge in the fast-growing aviation infrastructure market.

Far East Smarter Energy said yesterday that it has reached an equity transaction framework agreement with Beijing Jinghangan Airport Engineering Co.'s shareholders. Far East Smarter Energy will contribute CNY729.3 million, while its main shareholder Far East Holding Group Co. will put up CNY700.7 million.

The acquisition will give Far East Smarter Energy a 51-percent stake in the target company and Far East Holding a 49-percent stake, the announcement said.

Beijing Jinghangan Airport Engineering has a grade-1 license to engage in navigational lighting, air traffic control and light-current engineering projects, the announcement said. Jinghangan Airport Engineering has undertaken projects for major civil airports including Beijing Capital International Airport and Shanghai Pudong International Airport, airports for both civil and military uses such as Beijing Nanyuan Airport, military airports like Beijing Xijiao Airport and navy airports.

The acquisition will help Far East Smarter Energy leverage Jinghangan Airport Engineering's market resources and management team quickly expand its presence in the domestic general aviation industry and in the airport infrastructure construction market under the Belt and Road initiative, the announcement said.

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Keywords:   M&A,Airport Construction,Airport Electrical System,Airline Controller