November 7 (SeeNews) - Chinese firm Chongqing Machinery & Electric Co (HKG:2722) said Friday it will acquire a 49% interest in an Italian builder of small- and medium-sized hydropower plants (HPP).
The company signed a sale and purchase agreement (SPA) with the sole shareholder of the target -- Mario Bianchi -- on November 4. As part of the deal, the company will acquire a 35% equity stake in Water Gen Power Srl and later add 14% more via a capital injection.
The total consideration under the transactions will amount to approximately EUR 720,000 (USD 798,600), according to a statement on the Hong Kong Stock Exchange.
Genova-based Water Gen is an important cooperative European partner of the buyer’s unit Chongqing Water Turbine Works Co Ltd. The former constructs brand new HPPs and transforms old ones, too.
Apart from power equipment, Chongqing Machinery makes vehicle parts and components, machinery and china machinery tools. The move will promote the active expansion and upgrading of Chongqing Water Turbine’s manufacturing and services into the international hydroelectric market. Meanwhile, it will help stabilise its overseas channels by creating a marketing platform in Europe.