4 Jan 2002 – Hong Kong listed Far East Technology International Limited (FET) said Thursday it had agreed to take an 80 per cent stake in Through In Industries Limited’s Joint Venture Company, responsible for the holding, operation and management of Jiao Zuo Dan He Electric Power Generation Co. Ltd., Henan. The consideration of HK$125m ($16m) will be met by the issue of shares representing 37.75 per cent of issued share capital.
The Power Plant is currently jointly owned by several companies in China and Through In Industries. It has been in operation since 1988 produces electricity through two 100 MW high voltage electric generator. Power generated is sold to the Electric Power of Henan authorized by the local government, which in turn distributes electricity to end users in the Henan province. As at December 31, 2000, the net profits of the Power Plant was HK$14.3m and the net asset value was HK$132.6m.
Commenting on the investment, Joint Managing Director of Far East Technology Mr. Duncan Chiu said, “The principal activities of the Group are property trading and financial investment, entertainment and leisure business, and merchandise manufacturing and trading. The venture synchronizes with the Group’s objective to further consolidate its business activities and continue to pursue new investment opportunities, especially those with better growth potential in the PRC.”
In its statement FET said that the issue of the consideration shares would enable the Group to acquire assets without incurring any immediate cash outlay, and to broaden its shareholder base.