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Zhuzhou Times New Material Tech mulls private placement

Published: 14 Jun 2009 23:52:38 PST

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Jun. 15, 2009 (China Knowledge) - Zhuzhou Times New Material Tech Co Ltd<600458> plans to issue up to 60 million shares to not more than 10 institutional and individual investors, according to a company statement.

Zhuzhou Times New Material Tech hopes to raise over RMB 800 million from the share issuance, and half of the proceeds will be used to invest in wind blade projects, according to the firm's filing with the Shanghai Stock Exchange (SSE).

The firm's parent China South Locomotive & Rolling Stock Co Ltd (CSR)<601766><1766>, the country's largest manufacturer of rail vehicles, said it will subscribe at least 40% of the new shares in cash through its subsidiary.

Zhuzhou Times New Material Tech's planned wind blade project involves a total investment of RMB 420 million. RMB 350 million raised through share issuance will be used as fixed capital investment, and the firm will use its bank loans to replenish the project's working capital, according to Ji Xiaokang, secretary of the board of the firm.

The private placement plan is still subject to the approval from its shareholders and the China Securities Regulatory Commission (CSRC).

CSR holds a 38.46% stake in Zhuzhou Times New Material Tech through a subsidiary in Zhuzhou City, Hunan Province.

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