China Security & Fire Co. Ltd. to spend $150M on acquisitions

According to reports from Reuters, China Security & Fire Co Ltd plans to acquire security assets in Australia and Thailand for more than $150 million, adding to the growing trend of Chinese companies looking for overseas expansion through acquisition. It seems that China Security & Fire is planning to spend A $157.5 million ($120.3 million) to purchase security related assets owned by Securecorp Australia Pty Ltd and eWitness Nominees Pty Ltd – this is according to a filing at the Shanghai stock exchange.

China Security & Fire has a Hong Kong subsidiary, and reportedly it will be through this company that the group will purchase Impact Success Limited and United Premier International Limited for 1.3 billion Thai baht ($37.3 million). An additional result of this deal will be that China Security & Fire will be allowed to indirectly own stakes in Guardforce Security Services (Thailand) Co Ltd, Guardforce Aviation Services Co Ltd, Guardforce Aviation Security Services Co Ltd and Guardforce Holdings (Thailand) Ltd.

According to Reuters, China Security & Fire also plans to raise up to 5 billion yuan ($770 million) in a private placement of shares to help fund the acquisitions, which was reported from a separate filing. The rest of the proceeds would be used for security-related products and repaying bank loans. The reports also say that trading in the company’s Shanghai-listed shares is still to remain suspended as they have been since mid-December when they were halted pending an announcement from the company.