May. 8, 2012 (China Knowledge) - China XD Electric Co<601179
>, a high-voltage electricity transmission equipment producer based in Xi'an, Shaanxi
Province, announced that it plans to raise about RMB 3.38 billion by issuing 769 million shares to a Singapore subsidiary of General Electric through a private placement.
Upon the completion of the deal, the GE unit will hold a 15% stake in China XD Electric, thus becoming the second-largest shareholder of the Chinese company.
XD Electric also said that both sides would set up an electric transmission and distribution (T&D) and grid automation joint venture in China with a total investment of RMB 1.26 billion. XD Electric will hold a 59% stake in the JV, and the GE unit will own the remaining 41%.
In addition, XD Electric will leverage GE's global sales network to expand its overseas market.