Sino-Environment / AVIC

Sino-Environment / AVIC:
Chinese state firm Aviation Industry Corporation of China is looking to spin off its Spore shipbuilding mgt arm for a listing here. It aims to do this by taking over the listing of the insolvent Sino-Environment.
Once listed, AVIC Spore, which registered a net profit of $15m last year, plans to establish shipbuilding and ship trading operations within 2 years. It will start by acquiring shipyards from its parent company, AVIC Int’l, before looking overseas. The focus will be on engineering vessels, offshore vessels, environmentally friendly technology and energy-saving technology.
Under the plan, AVIC Spore will issue $6m worth of consideration shares to Sino-Environment's creditors and sh/h at $0.50/sh to help clear all its debt. It will also exchange one AVIC Spore share for every 250 Sino-Environment shares that they currently own.
AVIC Singapore will also issue 65m compliance placement shares to institutions at btwn $0.20-0.50 / sh.