china everbright limited’s rmb mezzanine fund enters into joint investment in avic precision casting science and technology co., ltd
china everbright limited (“cel”, stock code: 165.hk) announced that its rmb mezzanine fund has jointly invested with the aviation industry corporation of china (avic), avic capital and cofco trust co., ltd in avic precision casting science and technology co., ltd (“avic precision”). the establishment ceremony was held in beijing earlier in june. cel’s rmb mezzanine fund, through its set-up of special investment vehicle, holds 20.7% stake in the company. as the lead investor, cel’s rmb mezzanine fund will provide significant value-add to the establishment and enhancement of avic precision’s corporate governance and institutionalized management mechanisms.
attendees of the establishment ceremony include mr. henry tao, managing director of cel’s capital investment and financing department; mr. ben lu, managing director of cel’s rmb mezzanine fund; mr. xiandong wu, deputy general manager of avic; mr. wei pang, general manager of avic engine; and other shareholders.
the continuous development of china’s aviation industry has created an urgent need for the upgrading and replacement of aircraft engines. by adhering to its strategic focuses of “market-oriented reform, professional integration and capitalistic operations”, avic has restructured its engine vane casting business to concentrate resources on the promising growth market. by enhancing its level of professionalism and upgrading its industrial development capabilities, avic prevision is well-position to develop advanced aircraft engine and combustion engine components with international standard.
this investment of cel’s rmb mezzanine fund demonstrates a successful example of “soe restructuring” via introducing external investors and restructuring their businesses into a mixed-ownership model, which is a rising trend supported by the chinese government. in addition, it signifies an expanded partnership between avic and cel, broadening the area for collaboration between the two companies.
