Amoi Electronics Receives RMB 1.27 bln Support
The Beijing News, 7/02/08
Amoi Electronics Co, Ltd (600057.SH) announced yesterday that the company's true owner, the China Electronics Corporation (CEC), and controlling shareholder Amoi Electronics Company, would jointly provide nearly RMB 1.3 bln aimed at easing the company's cash flow problems. CEC will provide RMB 770 mln (725 mln of which is a guaranteed quantity; the remaining 45 mln is loan by mandate). Amoi will borrow RMB 100 mln from Amoi Electronics Company in an interest-free loan, and RMB 400 mln from CEC, with Amoi Electronics Company acting as guarantor. Loan periods for both loans are one year.
New Amoi Electronics Co., Ltd. president Lu Zhenyu said at the company's 2008 strategy meeting that the company plans to become China's top brand by market share in high-end electronics over the next two years, and will focus on the RMB 1,500 and up market for mid- to high-end 3G mobile phones this year. According to Lu, Amoi has established strategic partnerships with 6 of the world's 10 leading operators, and will export 1 mln high-end 3G handsets by the end of this year.
Editor's Note: For more background on Amoi Electronics Co., Ltd.'s cash flow crisis and its efforts to solve the problem, please see "Amoi Electronics Sells Assets for Cash", MD 2/26/08 issue, and "Cash-Strapped Amoi to Cut All But Handset Business", MD 3/27/08 issue.
Keywords: financing Amoi Electronics Company debt financing pricing 3G 600057.SH Amoi CEC Lu Zhenyu strategy wireless mobile phone
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