Jushi Group: investor to take strategic stake

Hony Capital, under the flag of Legend Holdings, the parent company of the Lenovo Group, will make a strategic investment in the capital expansion scheme of Zhejiang-based fiberglass producer Jushi Gr…

Hony Capital, under the flag of Legend Holdings, the parent company of the Lenovo Group, will make a strategic investment in the capital expansion scheme of Zhejiang-based fiberglass producer Jushi Group Co., Ltd. Jushi Group will increase its registered capital to USD 150 million by floating additional shares at USD 2.67 per share. On completion of the capital expansion, Hony Capital will hold an 18.5% stake in Jushi Group, while China Fiberglass Co., Ltd, the parent company of Jushi Group, will still hold the largest stake of 51%. The capital raised will be invested in a 120,000-ton fibreglass project, which is expected to be completed in August 2007 and which will manufacture products for export to Europe and the US. Jushi Group includes almost all the main business of China Fiberglass and contributes to more than 90% of the parent“s total profit. Hony Capital, focusing on privatization and restructuring of state-owned enterprises, has gained corporate restructuring experience in industries including glass and pharmaceuticals. A source with China Fiberglass said that Hony Capital is only a financial investor and is restrained from selling its stake in Jushi Group to other international fiberglass giants.