Investing.com - Financial Markets Worldwide
Get 40% Off
Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious Outperformance
Find Stocks Now

China's Sunward buys Canada's Avmax to diversify into aviation

Published 2015-10-13, 12:22 a/m
China's Sunward buys Canada's Avmax to diversify into aviation

BEIJING, Oct 13 (Reuters) - Chinese construction equipment
maker Sunward Intelligent Equipment Co 002097.SZ said it has
bought Canadian aviation services provider Avmax Group, which
has assets of up to $312 million, amid a sustained downturn in
the construction machinery market.
Sunward closed the deal with Avmax's biggest shareholder in
mid-September, but the pricing has yet to be finalised based on
Avmax's future performance, among other factors, Sunward said in
a stock exchanging filing late on Monday.
Sunward will raise up to 2.2 billion yuan ($347.24
million)via a private placement arrangement of shares to fund
the acquisition, it added.
The deal would give Sunward a share of China's fast growing
aviation market, including regional aviation and jet leasing
sectors, the statement said, by bringing Avmax's expertise to
the country.
Avmax, based in Calgary, maintains facilities in Vancouver
and Montreal, as well as in the United States, Kenya and Chad.
Besides a leasing and operations business, Avmax also offers
avionics, component repairs and engineering services.
Sunward's bigger rival Zoomlion Heavy Industry Science and
Technology 000157.SZ is also diversifying into farm machinery
sector amid a supply glut of construction equipment at home and
some overseas markets.
Sunward started making small drones as early as 2010. It
also invested in the jet engine business.
Its shares, traded in Shenzhen, fell to the daily trading
limit of 10 percent shortly after the market opened on Tuesday
and remained at that level at the noon break.
($1 = 6.3357 Chinese yuan renminbi)

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.