CVC Capital buys stake in Zhongfu

CVC Capital Partners Asia Pacific, a buyout fund partly owned by Citigroup Inc., is set to pay 1.65 billion yuan (US$213 million) for a controlling stake in a domestic bottle maker.

CVC Capital will buy a 29 percent stake in Shenzhen-listed Zhuhai Zhongfu Enterprise Co. from Zhongfu’s parent, Zhongfu said in a statement Saturday. The fund paid 8.27 yuan a share, 20 percent more than the market price. “Introducing foreign strategic investors can help the company absorb international management skills,’’ Zhongfu, based in the southern city of Zhuhai, said. The sale would improve the company’s performance, brand recognition and influence, Zhongfu said.

Shenhua profit up amid higher prices

CHINA Shenhua Energy Co., the world’s second-largest coal producer by reserves, posted a lower-than-expected 12 percent rise in 2006 net profit as higher costs and lower overseas coal sale prices pared gains from volume and domestic price growth.

China’s top coal producer made a net profit of 17.46 billion yuan (US$2.26 billion), lagging expectations of 18.5 billion yuan, the mean forecast from 18 analysts. Earnings per share were 0.965 yuan, up from 0.937 yuan a year ago, it said in a statement late Friday.

Eastern Air to lease 13 planes

CHINA Eastern Air Holding Co. said Friday it will spend US$794 million on leasing 13 aircraft this year after signing agreements with Industrial & Commercial Bank of China Ltd. (ICBC) and three French banks to finance the deals.

The French banks are Societe Generale, Credit Lyonnais and BNP Paribas SA, according to the company’s statement posted on the State-owned Assets Supervision and Administration Commission’s Web site. China Eastern Air Holding said its first leased aircraft this year will be an Airbus A330-200 and that ICBC and Credit Lyonnais will arrange the financing.

Laiwu Steel profit up 79.56 percent

LAIWU Steel Corp. said Friday its net profit in 2006 surged 79.56 percent to 746.04 million yuan (US$96.51 million) due to higher market demand and strong exports of its steel and steel products.

The Shanghai-listed company said it produced 5.465 million tons of pig iron last year, up from 3.849 million tons in 2005, though output of steel fell to 5.722 million tons from 6.04 million tons.