An ST Engineering subsidiary has filed a bankruptcy petition in China. JHK - a road construction equipment joint venture between ST Engineering's land systems unit, ST Kinetics, and China's state-owned Jiangsu Huatong Machinery - was placed under members' voluntary liquidation in late 2016.
The bankruptcy petition - filed in Zhenjiang in Jiangsu province - was to avoid further cash outlay, ST Engineering said yesterday. The firm, which ended production in 2016 amid operating losses, was unable to dispose of land and building assets "despite its best efforts for more than a year to secure buyers". ST Engineering said the failure was due to weak demand for industrial properties in the Zhenjiang area.
ST Kinetics owns 75.3 per cent of JHK, with its Chinese partner holding the remainder. ST Engineering said it has fully written down its investments in the joint venture, with a one-off charge in the three months to Sept 30, 2016.
That charge - to the tune of $61 million - comprised an impairment of ST Kinetics' net carrying value in JHK, as well as closure costs such as staff compensation.
China Jinjiang Environment
Mainboard-listed China Jinjiang Environment Holding Company (CJE) will be issuing 214 million new shares to Harvest Environmental Investment Fund to raise some $107 million.
The issue price of 50 cents apiece represents a 5.78 per cent discount to the volume-weighted average price of 53.07 cents on April 20, being the full market day for trades done on shares of the company preceding the subscription agreement. The subscription shares represent 17.5 per cent of the issued shares of the firm, and 14.9 per cent of the firm's enlarged share capital.
The subscriber, Harvest Environmental Investment Fund SP, is managed by Harvest Global Capital Investments Cayman, a wholly owned subsidiary of Harvest Global Capital Investments. The firm will use proceeds to upgrade waste-to-energy facilities in China.
Oceanus Group has partnered ShawInvestment Holdings and China Construction Seventh Engineering Division to tackle food security concerns from governments around the world.
The seafood value chain manager yesterday said they inked a framework deal to jointly explore global aquaculture-related investment opportunities and development projects worth US$500 million (S$659 million).