CIMC Enric, an affiliate of China International Marine Containers (Group) Co (CIMC), said the provision of the financial assistance to SOE is a “temporary arrangement to ensure that the target company can maintain sufficient financial resources to carry on its business operation until the target company becomes a subsidiary of the company.”
SOE, established in China in 2006 and majority owned by Sinopacific Shipbuilding Group, deals chiefly in the design and manufacturing of gas tanks to store LEG, LPG, LNG, as as well design and construction of marine oil and gas module.
In August this year, CIMC Enric signed a memorandum of understanding with Sinopacific to purchase 63.31% of stake in SOE, and with Evergreen Group to own the remaining 36.69% equity interest.
“The financial assistance provided by the group is fully covered by back-to-back guarantee provided by Evergreen so as to limit the risk borne by the group,” CIMC Enric announced to the Hong Kong Stock Exchange.
CIMC Enric said earlier that the acquisition of SOE is in line with the company’s development strategy to expand in industry chain for natural gas equipment and services from onshore to offshore and from downstream to upstream.
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