AVIC International Beijing Buys Additional Stake in KHD Humboldt Wedag International [Health & Beauty Close – Up]

AVIC International Beijing Company Limited announced the following:

- AVIC International Engineering Holdings, a wholly owned subsidiary of us, entered into share purchase agreements with IAT Reinsurance Company, Occidental Fire & Casualty Company of North Carolina, Harco National Insurance Company, Transguard Insurance Company of America, Inc., Acceptance Casualty Insurance Company, Acceptance Indemnity Insurance Company, Bermuda Partners, Wilshire Insurance Company, JC Kellogg Foundation, MFC Industrial, True Heritage Limited and Peter and Cynthia Kellogg Foundation as sellers for the purchase of in the aggregate 19.03 percent of the shares of German company KHD Humboldt Wedag International.

According to a release, on completion of these transactions, AVIC will hold in aggregate 39.03 percent of the shares in KHD.

-At the same time, AVIC Engineering, acting in concert and together with Europe Project Management, Europe Technology, Europe Engineering Holdings, published the decision to make an offer to the shareholders of KHD to acquire all of the remaining KHD shares by way of a voluntary public takeover offer.

-The Takeover Offer will be a cash offer to all KHD Shareholders at an offer price of EUR 6.45 per share.

Mr Diao, president of AVIC Beijing Company: 'This addresses the unclear ownership picture and is a long-term investment for us. A more stable shareholder base will benefit KHD's worldwide employees, customers, suppliers and financing partners and KHD will continue providing environmental friendly and state-of-the-arts products and services.'

Mr Diao continued: 'We expect that the Takeover Offer will be widely accepted. We would like to emphasize that neither the share purchase agreements, nor the Takeover Offer, are conditional upon a minimum acceptance level. Upon completion of the Takeover Offer, we will be pleased if all of the shares of KHD have been acquired. If not we will support KHD as its lead shareholder.'

More information:

www.avic.comcn

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