Vallianz Holdings has entered into an agreement with two Hong Kong-based subsidiaries of China’s CRRC Corporation which will see the Chinese company invest S$23.65m ($16.6m) for a 13.9% stake in Vallianz.
The two subsidiaries of China’s state-owned CRRC, which supplies rail equipment, will subscribe for an aggregate of 550 million new ordinary shares in Vallianz at S$0.043 per share. The new ordinary shares issued to CRRC will be subject to a moratorium period of one year.
Mr Ling Yong Wah, CEO of Vallianz, commented, “We are honoured that a major China state-owned corporation like CRRC is demonstrating its confidence in the Group’s business and our future prospects by taking a substantial equity stake in Vallianz.”
CRRC together with major shareholders Swiber and Rawabi will have a combined shareholding of 53.6% in Vallianz after the transaction.