China Yuchai Entered Agreementt For Sale Of Suzhou Remanufacturing Unit To Beijing Liandong For RMB 179.94M
Portfolio Pulse from Charles Gross
China Yuchai International Limited (NYSE:CYD), a major powertrain solution manufacturer, has agreed to sell its 100% equity stake in Yuchai Remanufacturing Services (Suzhou) Co., Ltd. to Beijing Liandong Jinyuan Management Technology Co., Ltd. for RMB 179.94 million. The payment will be made in cash and deposited into an escrow account in phases, including the book value of cash equivalents and fair value of equipment. The deal is pending approval from the Suzhou Industrial Park Administrative Committee.
December 31, 2023 | 2:55 pm
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China Yuchai's sale of its Suzhou Reman unit to Beijing Liandong for RMB 179.94M could inject cash into the company and streamline its operations.
The sale of the Suzhou Reman unit is likely to have a positive short-term impact on China Yuchai's stock price as it could improve the company's cash position and allow it to concentrate on its core business. The transaction is significant for the company, but its impact may be moderated by market conditions and the finalization of the deal, which is subject to regulatory approval.
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