Singapore, Singapore – January 2, 2018 - China Yuchai International Limited (NYSE: CYD), a leading manufacturer and distributor of engines for on- and off-road applications in China through its main operating subsidiary, Guangxi Yuchai Machinery Company Limited, announced today that its subsidiary, Guangxi Yuchai Machinery Monopoly Development Co., Ltd (“GYMMD”), has acquired the remaining 49% equity interest in Hunan Yuchai Machinery Industry Company Limited (“HYMIC”) from its joint venture partner, Hunan Chengwei Automobile Spare Parts Company Limited (“Hunan Chengwei”) (the “Acquisition”). As a result of the Acquisition, HYMIC is now a wholly-owned subsidiary of GYMMD.
The total consideration for the Acquisition was RMB6,694,500, which was satisfied in cash and funded through internal resources.
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 RMB13,856,500 based on an independent valuation performed by Beijing China Enterprise Asset Appraisal Co., Ltd. (using the asset-based method of valuation) and commissioned by Hunan Chengwei and GYMMD. The consideration for the Acquisition represents a discount of approximately 1.4% to the market value of the 49% equity interest as at June 30, 2017.