China Yuchai Unit GYMMD Buys Remaining 49% Stake In HYMIC From JV Partner

(RTTNews) - China Yuchai International Ltd. (CYD), a manufacturer of engines for on- and off-road applications in China, announced Tuesday that its subsidiary, Guangxi Yuchai Machinery Monopoly Development Co., Ltd or GYMMD, has acquired the remaining 49% equity interest in Hunan Yuchai Machinery Industry Company Limited or HYMIC from its joint venture partner, Hunan Chengwei Automobile Spare Parts Company Limited.

The total consideration for the acquisition was 6.69 million Chinese yuan, which was satisfied in cash and funded through internal resources. The consideration represents a discount of approximately 1.4% to the market value of the 49% equity interest as at June 30, 2017.

The company said the consideration for the acquisition was arrived at on a "willing-buyer willing-seller" basis, taking into consideration, among other things, the market value of a 100% equity interest in HYMIC as at June 30, 2017 of 13.86 million yuan, based on an independent valuation performed by Beijing China Enterprise Asset Appraisal Co., Ltd. and commissioned by Hunan Chengwei and GYMMD.

As a result of the acquisition, HYMIC is now a wholly-owned subsidiary of China Yuchai unit GYMMD.