They’re bidding to develop their businesses in China.
Pavillon Holdings has sealed the deal to incorporate with Beijing State Research Interoperability Communication Technology (BSRICT) into a joint venture company called State Research Pavillon Financial Leasing (SRPFL) in the PRC.
According to the Pavillon’s announcement, SRPFL is formed in a bid to develop the two companies’ businesses in the financial leasing industry in China.
Further, Pavillon noted that the registered share capital of SRPFL is US$30m. Pursuant to the JV agreement, Pavillon and BSRICT will each hold 50% shareholding interest respectively. Pavillon and BSRICT will each pay US$15m, or the equivalent in RMB respectively before 31 December 2018. Of this, US$3m will be paid within three months of incorporation of SFPRL.
The investment in SRPFL will reportedly be funded through internal resources, and the transaction is not expected to have any material impact on Pavillon’s consolidated net tangible assets and earnings per share for FY16.
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