Singapore-based crane rental company Tat Hong obtained a SGD 65 million (about U.S. $45 million) capital investment and established a new tower crane rental joint venture in China.
Private equity fund AIF Capital III Shipping & Logistics has acquired 65 million convertible redeemable preference shares at an issue price of SGD 1 per share. The share issue raised net proceeds of SGD 63.5, Tat Hong said, with 80 percent to be used to fund its expansion plans in Australia and China, with the remainder to be used for general corporate and working capital purposes.
“This is a positive affirmation of Tat Hong’s established track record in the region and a vote of confidence in the group’s long-term prospects,” said Tat Hong president and CEO Roland Ng. “Having secured a strong foothold in our two key markets, Australia and China, through strategic partnerships and acquisitions, we are looking to further expand our presence in these markets to capture value-accretive opportunities arising from both governments’ committed budgets for infrastructure and resource projects. Notwithstanding the uncertain outlook for the global economy, we remain optimistic of our long-term growth prospects in China’s tower crane rental market.”
Tat Hong has established a joint venture in China with Beijing Tat Hong Zhaomao Equipment Rental Co.