China Development Bank (CDB), a major policy bank in China, has terminated an RMB160m ($24.4m) investment deal with Sany Marine Heavy Industry.
According to Sany Heavy Equipment International, the parent company of Sany Marine Heavy Industry (SMHI), CDB’s National Development Fund reached an agreement with the company to invest RMB160m to acquire a 14.56% equity stake in SMHI in March 2016. SMHI planned to use the funds to expand operations at its Zhuhai industrial park.
After recent negotiations, both parties have agreed to terminate the agreement and SMHI will refund the full investment amount plus RMB2.848m interest. SMHI explained that the company has sufficient working capital to support its business and it is not necessary to retain the investment, which will otherwise incur more financial costs.
SMHI currently operates two manufacturing bases in Zhuhai and Changsha, and mainly engages in the manufacturing of port machinery, offshore working vessels and offshore equipment design.