Hong Kong, August 4, 2009 -- AIF Capital, one of the largest Asia-based independent private equity firms, is pleased to announce that AIF Capital Asia III, L.P. and its affiliates have agreed to invest Singapore Dollar (“S$”) 65 million (approximately US$45 million) in Convertible Redeemable Preferred Securities (“CRPS”) to be issued by Tat Hong Holdings (the “Company”, www.tathong.com), one of the world’s largest crane distribution and rental businesses.
The investment would give AIF Capital an 11.41% interest in the Company based on its current capital base (as at August 3, 2009) and is conditional on stock exchange and shareholders’ approval, which is expected within 60 days. Each CRPS is priced at S$1.00 and may be converted to one ordinary share of the Company.
The Company’s business is closely linked to long-term economic growth and infrastructure and natural resources development in Asia. Tat Hong will primarily use the investment to expand its operations in Australia and China, where the Company has already established a major presence. China in particular offers tremendous growth due to increased public infrastructure investment and long-term trends towards equipment leasing.
“We are pleased to become a partner with Tat Hong Holdings and its highly experienced management team. We look forward to supporting this well-established business in its regional expansion,” said Peter Amour, AIF Capital’s Chief Executive Officer. “This investment reflects our belief in Asia’s growth potential and is in line with our an-Asian
focus on Southeast Asia, China and India.”
About Tat Hong
Publicly listed in Singapore, Tat Hong distributes and leases various types of cranes and other construction related equipment for construction purposes to infrastructure, power, oil and gas, and other industrial construction customers across Southeast Asia, Australia and China. Its crane leasing business maintains a fleet of over 600 mobile and crawler cranes and specializes in lifting capacities of 80 to 1,000 tons. The Company’s management has over 30 years experience in the industry and has built Tat Hong into the largest crane leasing company in Asia in terms of aggregate tonnage capacity and also seventh in the world in terms of aggregate tonnage.
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