Lance, PFCK nice pick, thanks. As I suspected yesterday, BLHG announces acquisition news today: Beacon Light Announces New Acquisition Business Editors
HONG KONG--(BUSINESS WIRE)--July 28, 1999--Beacon Light Holding
Corporation (OTC BB: BLHG) acquired 100% ownership of Hong Tex Virgin
Island Company Limited and Hong Tex Holding Company Limited (Hong
Kong).
Hong Tex Hong Kong own 51% of Cityford Dyeing and Printing
Industrial Limited Factory in Wuhan (China) 49% of this factory is
owned by the Wuhan municipal government. The Cityford factory is
located in Wuhan (PRC) as one of the major core enterprises in the
textile industry of Wuhan. The factory occupies an area of 40,000 sq.
meters with a net building area of 22,100 sq. meters, it employs 1,000
employs and has an annual production capacity of 45 million yards of
printed and dyed textile fabrics. The basic raw material processed is
grey cloth, purchased mainly from India, Pakistan and China. The
manufacturing process consists of design, printing form production,
pretreatment, printing, dyeing, finishing and roll packing.
Hong Tex Hong Kong is the marketing and sales organization for
the finished products, its clients are garment and household textile
manufactures supplying many leading fashion retailers and household
product chains. Sales ratio is 50% USA, 20% Japan, 20% Europe and 10%
South East Asia. The acquisition of this group of companies, including
its 51% share of the Cityford factory is made against 8,000,000 common
restricted shares of Beacon Light Holding Corporation. At a glance
this seems to be disproportional compared with the Net asset value of
the Hong Tex (100%) and Cityford (51%) group of US $11,278,000.
However, with this transaction the following factors have been taken
into account.
- The considerable changes in Global garment manufacturing,
combined with a quota restrictions on garments manufactured in
China led to a downward trend on the turnover of the Hong Tex
group during the past two years.
Turnover 1996 - 27 million US Dollars.
Turnover 1998 - 9.3 million US Dollars.
- The need to shift business connectivity and marketing emphasis to
other parts of the world, making use of BLHG international sales
synergies.
- Underlying the transaction is a mutual agreement to realize
optional utilization of the production capacity.
- Improved effective response to the changing international garment
industries positioning.
During 1998 the company did run a modest profit of US $440,000.
BLHG's management team is confident that already during operational
year 2000, the turnover will be back at approximately 1996 level at a
2.5 million to 3 million Net profit.
The acquisition of Hong Tex by BLHG is a logical addition to
their consumer products division in Asia and its development in
manufacturing and wholesale distribution. It also fits the adopted
strategy of need of "Turnaround" and engineering in greater China and
South East Asia, at attractive investment/cost ratio.
BLHG thereby capitalizes on the long term experience of its
management in international marketing and Asian manufacturing.
-0-
*T
BLHG manufacturing and wholesale division consist now of:
Wellux Industries Ltd. (Hong Kong)
Wellux B.V. Europe (Netherlands)
J.V.A. Roosen (Netherlands)
Hong Tex group of companies (Hong Kong, China, Virgin Islands)
Products: Household Plastics
Household Electronics
Adult toys and novelties
Household textiles
Cookware and cutlery
Garment Fabrics
Hong Tex Virgin Island Company Limited Key Figures
Current assets US $1,280,000.
China factory investments US $5,000,000.
Net assets US $6,280,000.
Cityford Dyeing and Printing Industrial Ltd. Key Figures 31/12/98
Fixed assets
(Buildings, Lands, Machinery) US $35,500,000
Net current assets US $7,950,000
Total assets US $43,450,000
Bank facilities and loans US $28,650,000
Related Company Loans US $5,000,000
(Net total assets 51% participation) US $4,998,000
(All figures subject to final audit)
*T
Plastic Factory in China
The consummation of the acquisition agreement of the Casin
plastic factory in China is planned to find place within the coming
two months, depending on completion of due diligence information still
to be processed by the Chinese side.
Niphix Exchange
Niphix management and BLHG management are continuing their
evaluation of options of cooperation in light of its strategic and
financial consequence.
Outstanding Shares
BLHG acquired back and canceled over 14 million of its
outstanding shares, in this process increasing shareholder value. At
present BLHG has a total of approximately 16 million shares
outstanding, in addition 8 million restricted shares will be issued
for the Hong Tex acquisition making a total of approximately 24
million shares issued.
Safe Harbor Disclosure
This Press Release contains or incorporates by reference
"forward-looking statements," including certain information with
respect to plans and strategies of Beacon Light Holding Corporation.
For this purpose, any statements contained herein or incorporated
herein by reference that are not statements of historical facts may be
deemed to be forward-looking statements. Without limiting the
forgoing, the words "believes," "anticipates," "plans," "expects,"
"enhanced" and similar expressions are intended to identify
forward-looking statements. There are a number of important factors
that could cause actual events or actual results of Beacon to differ
materially from these indicated by such forward-looking statements.
--30--jh/ny*
CONTACT: Beacon Light, Hong Kong office
Hans Lodders
Phone: ++ 852 2331 2160
E-Mail: BLHcorp@AOL.com
KEYWORD: INTERNATIONAL ASIA PACIFIC
INDUSTRY KEYWORD: APPAREL/TEXTILES PUBLISHING BANKING MERGERS/ACQ
Today's News On The Net - Business Wire's full file on the Internet
with Hyperlinks to your home page.
URL: businesswire.com
|
