CHTC completes first overseas strategic buyout of Fong's
Zhang Jie, the Chairman of China Hi-Tech Group Corporation (CHTC), announced at the ShanghaiTEX on 15 June 2011 that China Hi-Tech Group has successfully completed its acquisition of the controlling shareholding in Fong's Industries Co. Ltd. recently. Through the acquisition, it enables China Hi-Tech Group to further strengthen its business and operation modes within the textile machinery industry. And it intensifies its strength in improving the competitiveness of the whole Chinese textiles industry in the international markets as well.
On 7 January 2011, China Hi-Tech Group and Mr. Fong Sou Lam, the controlling shareholder, chairman and executive director of Fong's Industries signed a sale and purchase agreement pursuant to which China Hi-Tech Group has agreed to acquire from Mr. Fong 37.7% of the issued share capital of Fong's Industries Co. Ltd. at HK$5 per share on or before the long-stop date of 7 May 2011. At the close of the unconditional mandatory cash offer on 3 June 2011, China Hi-Tech Group has acquired approximately 61% shareholding in Fong's Industries, a publicly listed company with 48 years' history now becomes a subsidiary of China Hi-Tech Group.
China Hi-Tech Group is the world's second largest textile machinery manufacturer, next after Oerlikon. As a leading enterprise in the textile machinery industry in the PRC, China Hi-Tech Group has developed capabilities and considerable strengths in technology and quality to manufacture and supply full sets of cotton and artificial fibres machinery. The acquisition of Fong's Industries is in line with the current trend of the consolidation in the dyeing and finishing industry as well as China Hi-Tech's strategy to continuously expand and strengthen its textile machinery manufacturing operations in the field of dyeing and finishing machinery.
In recent years, the dyeing and finishing machinery industry in the PRC is quite decentralized with the top ten enterprises accounting for 15.32% of the market share and Fong's Industries and China Hi-Tech Group are the 1st and 2nd largest respectively. Hence the merger of Fong's Industries into China Hi-Tech Group will substantially strengthen their competitive edge and secure a majority share within the industry as a whole.
Fong's Industries Group was established by Mr. Fong Sou Lam in 1963. Since its establishment, it is always adhering to its philosophies of “Merger with Your Excellence”. Fong's Industries considers loyal customers as its invaluable assets, thus placing great emphasis on customer service and Fong's Industries has successfully built up its reputation as a leading supplier of various quality dyeing and finishing machines in the world.
With textile dyeing and finishing machinery as its core business, Fong's Industries Group also carry on two complementary business segments, Fong's Steels and Tycon Alloy in stainless steel trading and stainless steel casting respectively. In 1990, Fong's Industries was publicly listed in HKSE and it was the first publicly listed company in the field of textile dyeing and finishing machinery. Fong's Industries holds a dominant and important position in the global dyeing and finishing machinery industry.