Haitian Intl. Holdings Ltd. (Cayman Islands), the holding company behind the worlds most prolific injection molding machine manufacturer, Haitian (Ningbo, China), acquired a 91% interest in Zhafir Plastics Machinery GmbH (Ebermannsdorf, Germany), a company it helped form in 2006, that is expected to soon start assembly of high-end all-electric injection molding machinery. The firm will exhibit at the K Show in October (Stand 15A57). The purchase set Haitian back by €6,569,440.
According to a mandatory stock exchange report filed by Haitian, Zhang Jianming and Zhang Jianfeng, both executive directors at Haitian as well as founders, with Helmar Franz, of Zhafir, sold their respective 60% and 20% shares in Zhafir to Haitian. Franz sold 11% of his stake and continues to hold a 9% stake in Zhafir, where he is managing director. Zhang Jianming is also Haitians CEO.
Franz is the former CEO at Demag Plastics Group (DPG), leaving that company in March 2005 and in January 2006 joined the board of directors at Ningbo Haitian. Haitian is paying for the Zhafir purchase with help of a €6.57 million loan from Zhang Jianming. The official buyer of Zhafir is Sunnew Investments Ltd., a 100% subsidiary of Haitian based on the British Virgin Islands.
The three men acquired the entire issued share capital of Zhafir Plastics in December 2005 from independent third parties for an aggregate consideration of €20,000 (equivalent to approximately HK$209,000), according to the mandatory statement filed by Haitian with the Hong Kong Stock Exchange. The Haitian acquisition includes net liabilities of Zhafir Plastics of approximately €973,047 as at June 30, June 2007, based on the audited financial statements of Zhafir Plastics.
According to Haitian, the acquisition will give it better access to German molding machinery technology. Zhafir has started construction of a facility in Germany to assemble its machines.
Because the acquisition is small in comparison to Haitians size, the purchase did not require approval from Haitians independent shareholders.[email protected]