China firm to buy Thai security assets

China firm to buy Thai security assets

SINGAPORE — China Security & Fire Co Ltd plans to acquire security assets in Australia and Thailand for more than $150 million, the latest example of Chinese companies expanding overseas through acquisitions.

Chinese companies have been actively making foreign acquisitions in sectors such as property, consumer, financial and commodities.

China's Anbang Insurance is leading a group which agreed on Friday to buy Starwood Hotels & Resorts in a $13.16-billion deal.

China Security & Fire, which sells security products, plans to spend A$157.5 million ($120.3 million) to purchase security related assets owned by Securecorp Australia Pty Ltd and eWitness Nominees Pty Ltd, it said in a filing to the Shanghai stock exchange on Friday.

Its Hong Kong subsidiary will purchase Impact Success Limited and United Premier International Limited for 1.3 billion baht ($37.3 million).

The acquisition will indirectly allow China Security & Fire to own stakes in Guardforce Security Services (Thailand) Co Ltd, Guardforce Aviation Services Co Ltd, Guardforce Aviation Security Services Co Ltd and Guardforce Holdings (Thailand) Ltd.

China Security & Fire also plans to raise up to 5 billion yuan ($770 million) in a private placement of shares to help fund the acquisitions, it said in a separate filing.

The rest of the proceeds would be used for security-related products and repaying bank loans.

Trading in its Shanghai-listed shares will remain suspended as they have been since mid-December when they were halted pending an announcement from the company.

Do you like the content of this article?