CAMCE Expands to NA Through Acquisition of Canadian Company

On January 6th, CAMCE announced its plan to acquire 60% of Canadian Procon Holdings (Alberta), Inc. Stock for the price of RMB 737 million as part of the company’s efforts to expand into the North American engineering market. According to the announcement, the CAMCE board adopted the proposal to acquire the Canadian Procon Holdings (Alberta), Inc. (hereinafter referred to as “Procon”) on January 4th. On December 19th, 2011, the company had signed the Stock Purchase Agreement with the existing stockholders of Procon. Under which CAMCE would acquire 60% of the stocks of Procon for the price of CAD 119.34 million (approximately RMB 737 million). According to the announcement, the company will increase the capital of its wholly-owned subsidiary China CAMC Engineering Hongkong Co., Ltd. By USD 120 million to USD 200 million with self-raised funds. Then China CAMC Engineering Hongkong Co., Ltd. Will invest in and incorporate China CAMC Engineering Canada Co., Ltd., which will acquire and hold 60% of Procon stocks in the future. Upon completion of the transaction, Procon will continue to exist as a subsidiary of China CAMC Engineering Canada Co., Ltd. And its existing stockholders will hold on to the remaining 40% of the Procon stock. Procon, established in 1992, is a private enterprise based in Vancouver, Canada and effectively controlled by two natural persons. Procon mainly specializes in mining contract work and provision of mining services. Its business scope covers the entire lifecycle of mine projects, from exploration to mining, including reconnaissance, pre-production and production services, and project management. In addition, Procon offers municipal and water conservancy services such as tunneling; For example, tunneling for hydropower plants. The successful acquisition of Procon by CAMCE will provide the company with an edge in its expansion efforts into the area of mining project contract work and the markets of developed countries. Source: sinomach.com.cn