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CNG entered into Strategic Cooperation Agreement with China-Africa Development Fund

发布时间:2015-11-16      内容来源: 

    China Glass Holdings Limited, one of China’s leading manufacturer of flat glass and the largest manufacturer of coated glass, announced on 9 November 2015 (after trading hours), that the Company entered into the Strategic Cooperation Agreement with the China-Africa Development Fund (China Development Bank Corporation is the sole shareholder at present) in order to capture new opportunities brought by the “one belt one road” policy and materialize the strategy of investing and developing in the African markets.


    The Strategic Cooperation Agreement sets out certain areas of cooperation between the parties such as investment in construction glass, solar glass and related construction material projects in African markets, mutual acknowledgement of each other as preferred business and investment partners in future investment projects and the establishment of a resource sharing mechanism.


    As part of the cooperation between the China-Africa Development Fund and the Company, on 9 November 2015 (after trading hours), the Company entered into the Subscription Agreement with the Bondholder pursuant to which the Bondholder has conditionally agreed to subscribe in cash for, and the Company conditionally agrees to issue, the Convertible Bonds in the aggregate principal amount of US$10 million.

    The Company expects that nominal expenses will be deducted from the gross proceeds, and the net proceeds of approximately US$9.9 million will be used for capital expenditure relating to the Group’s investment projects in Africa, including the establishment of the new production base in Nigeria. The Bondholder is the wholly-owned subsidiary of the China-Africa Development Fund registered in Hong Kong. It is an investment platform established by the China-Africa Development Fund to invest in projects in Africa relating to the manufacturing industry.

“Going abroad”
    To diversify and explore new business opportunities, the Company has been actively implementing the strategy of “going abroad”. Certain areas of Africa has been existing markets for the Company’s products, by leveraging on the PRC government’s development of the “one belt and one road” and its support for capacity transfer policies, and following the implementation of the “going abroad” strategy of the Company. The localization of our production lines will further increase demand in those markets, allowing Africa to become the Company’s main focus for developing an overseas market. In 2015, the Company has begun the establishment of new production bases in Nigeria and Egypt. The float line in Nigerian is expected to be put into production in 2016 with an annual production capacity of 150,000 tons. The establishment of a strategic cooperation relationship with the China-Africa Development Fund is a testament of the progress made by the Company in expanding its business to the African markets.


    The Directors consider that entering into the Strategic Cooperation Agreement with the China-Africa Development Fund will allow the Company to (i) create a strategic advantage for its development of the African markets for construction materials such as flat glass, (ii) leverage on the years of experience and knowledge of the China-Africa Development Fund in the African markets to increase the efficiency of the Company’s assimilation into the African markets, and (iii) facilitate additional resources to create new cooperation opportunities. The Directors consider that the terms and conditions of the Strategic Cooperation Agreement are fair and reasonable, on normal commercial terms and are in the interest of the Company and its shareholders as a whole.

About China-Africa Development Fund
    The China-Africa Development Fund was one of the eight measures announced at the Beijing Summit of the Forum on China-Africa Cooperation by the Chinese Government in November 2006. The China-Africa Development Fund commenced its business on 26 June 2007. The China-Africa Development Fund is the first fund to be announced by the President of the PRC and established by the State Council of the PRC, and is the only fund in China focusing on equity investment in Africa. At present, China Development Bank Corporation is the sole shareholder of China-Africa Development Fund.

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