Biz Scene

MARKET

Wind advantage

Goldwind Science & Technology Co, China's largest wind power equipment maker, plans to raise 1.8 billion yuan in an initial public offering to gain from the country's efforts to counter climate change.

Goldwind will sell 50 million shares at 36 yuan each, the Xinjiang-based company said in a statement to the Shenzhen Stock Exchange.

The share sale will help fund Goldwind's plan to spend about 1.9 billion yuan to expand capacity and boost research and development, according to its share sale document.

Oriental takeover bid

ArcelorMittal, the world's largest steel producer, has signed a deal to take over China Oriental, as it tries to gain further inroads into the world's biggest steel market.

ArcelorMittal will raise its stake to 73.13 percent from 28.02 percent of shares in the Hong Kong-listed steelmaker, the two companies said in a joint statement, a move that will cost about $1 billion.

The deal still needs the approval of the Chinese Ministry of Commerce and the State Administration for Industry and Commerce, which are yet to permit a foreign owner to take control of a large domestic steel producer.

GRAPEVINE

Purchase scrapped

Suning Appliance Co, China's second-biggest home-appliance retailer, said it had scrapped a plan to buy Beijing Dazhong Electrical Appliances Co because of a disagreement over terms.

Suning, based in the eastern city Nanjing, announced the withdrawal in a statement to Shenzhen's stock exchange yesterday, without disclosing the terms. The company said in April it was in talks to acquire closelyheld Dazhong after media reports that it would buy Beijing's largest electronics retailer for 3 billion yuan.

Gome Electrical Appliance Holdings Ltd is offering a higher price than Suning for the acquisition, the Shanghai Securities News reported yesterday, citing unidentified sources.

Shipping expansion

China Shipbuilding Industry Corp will invest 10 billion yuan in a new production base for vessels and equipment in northern China, Shanghai Securities News reported, citing an unidentified company official.

The 3.5-sq-km facility in Tianjin will add 3 million deadweight tons of shipbuilding capacity and contribute 20 billion yuan to annual sales by 2015, the newspaper said.

Cementing gains

China National Materials Company Ltd (Sinoma), the world's largest cement engineering service provider, raised $538 million by pricing its Hong Kong initial public offering at the top of an indicative range, Reuters reported yesterday, citing a source familiar with the deal.

The company, which is engaged in cement engineering and makes cement, glass fiber and high-strength glass fiber, sold 931.7 million shares, or 27.15 percent of its enlarged share capital, at HK$4.50, at a range of HK$3.20-HK$4.50 each.

LOCAL

Price adjustments

Prices on all items sold at the Beijing Capital International Airport will be cut by up to 30 percent on average by the end of this month, Xinhua reported.

The prices of 8,600 items sold at the two terminals will be reduced to levels comparable with downtown department stores or supermarkets.

Most prices were cut by up to 40 percent. A bottle of green tea sells for 3.5 yuan now, almost the same as in downtown shops. A packed roast duck is 70 yuan, compared with 98 yuan in the past.

BIZ MOVE

Kwok now head

Bear Stearns Co, the Wall Street firm teaming up with China's biggest brokerage, has hired Steven Kwok to head a $500 million private equity venture with Chinese billionaire Huang Guangyu.

The fund was set up in early 2007 with Eagle Investment Group, owned by Huang. Kwok, a former UBS AG executive, will invest in retail and consumer companies in China, New York-based Bear Stearns said in a statement yesterday.

Kwok was previously managing director at Orchid Asia, a China-focused private equity fund with $450 million under management.

BIZ UNUSUAL

Ad philosophy

Confucius and Lao Tse, the two greatest philosophers of ancient China, have become unwitting models for the modern day suit. An apparel company in Nanchang, capital of East China's Jiangxi Province, recently used the two ancient figures to advertise their products on an outdoor ad, which depicts the two world-renowned philosophers wearing ties, modern shirts and suits.

Eye-catching ads

Driving along Beijing's East Third Ring Road from south to north, it would be hard to miss China's largest outdoor LED (light emitting diode) advertising screen on the Jingxin Building.

With an investment of 80 million yuan from Beijing Haoyun Investment Group, the screen measures 758 sq m and is composed of 1,260 screen tiles, provided by Barco, a Belgian-headquartered world leader in visual and display solutions.

"Large-scaled LED screens play important roles in many landmark locations across the globe. With China's rapidly growing outdoor advertising sector, such media will have huge potential," Frank Christiaens, managing director of Barco China, said.

Well-known brands, such as Mercedes-Benz, Audi, Microsoft and Adidas have already signed deals to run ads on the screen.

What's your beef?

When you eat various types of beef while enjoying hot pot, have you ever thought about its quality? Now, a new profession, "beef classifier" has emerged in China.

Unlike the traditional butcher, the classifier is specially trained in the value of different beef cuts, and selects and separates beef after slaughter for different uses.

(China Daily 12/14/2007 page15)