[ET Net News Agency, 25 July 2019] AviChina Industry & Technology Company Limited
(02357) said the company entered into a partnership agreement with AVIC, AVIC Capital,
AVIC Rongfu, Guangde Investment Fund and Zhenjiang Investment in relation to the formation
of a fund with an initial total capital commitment of RMB4 billion.
Pursuant to the partnership agreement, the company and AVIC Rongfu agreed to make a
capital contribution of RMB600 million and RMB50 million in cash, representing 15% and
1.25% of the total capital contribution of the fund, respectively. Upon establishment, the
partnership interest in the fund will be held as to 15%, 10%, 15%, 1.25%, 50% and 8.75% by
the company, AVIC, AVIC Capital, AVIC Rongfu, Guangde Investment Fund and Zhenjiang
Investment, respectively.
The name of the fund is tentatively to be "Beijing AVIC Phase I Aviation Industrial
Investment Fund (Limited Partnership)".
The purpose of the fund is to invest in reform and restructuring projects,
mixed-ownership reform projects, research institutes transformation projects, re-financing
projects of listed companies, and other projects in the aviation industry.
The business scope of the fund includes equity investment, equity investment management
and management consulting, subject to the approval by the industrial and commercial
administrative authorities. (RC)