Hangzhou Zhongce shares sold to British Virgin Islands firm

ERJ staff report (TB)

Hong Kong -- China Enterprises Ltd. has completed the sale of its

26-percent share in Hangzhou Zhongce Rubber Co. Ltd. to CZ Tire

Holdings Ltd., an entity identified as, “a company incorporated under

British Virgin Islands laws focused on investments in the Chinese tire

industry.”

China Enterprises, a Hong Kong-based Bermuda corporation, realised

$94.4 million on the sale of its shareholding in Hangzhou Zhongce,

which is China's largest tyre maker and No. 11 worldwide with 2010

sales of $3.23 billion. The firm's brands include the Chaoyang,

Goodride, Westlake and Yartu names.

China Enterprises declined to provide further information on the identity of CZ Tire Holdings' owners or investors.

Following the sale of its ownership interest in Hangzhou, China

Enterprises' assets consist of the cash that it received in connection

with the sale of certain investments in financial assets.

The company's board of directors and management are considering all

alternatives available for the use of the cash received, the firm said.

From Tire Business (A Crain publication)

Press release from China Enterprises Ltd.