AVIC confirms interest in buying Avolon

    A SUBSIDIARY of Aviation Industry Corporation of China (AVIC) said Friday it was in talks to buy Dublin-based aircraft leasing firm Avolon, confirming media reports that takeover discussions were under way.

    AVIC Capital Co. has been in talks with relevant parties on the acquisition of Avolon and conducted initial due diligence, it said in a statement filed to the Shanghai Stock Exchange website. However, it denied a report in a Chinese newspaper Aug. 8 that valued the deal at about 12 billion euros (US$16.05 billion). “The size of the deal mentioned by the newspaper report is not accurate,” the statement said. AVIC also said it remained in talks with relevant parties but that no deal had been reached yet. “There is still uncertainty that a deal can be completed,” the statement said.

    Samsung SDI, Sungrow Power plan venture

    SOUTH KOREA’S Samsung SDI Co. said yesterday it has signed a preliminary deal with Sungrow Power Supply Co., which lists shares in Shenzhen, to form a joint venture to make energy storage systems in China.

    The companies plan to build a production facility by next year, the statement said. Samsung SDI, a maker of electronics components, did not disclose how large the joint investment will be and said the location has not been decided.

    Temasek buys shares of tech, consumer firms

    TEMASEK Holdings Pte, Singapore’s state-owned investment firm, has purchased U.S.-listed stocks in Chinese technology and consumer firms as it diversifies away from bank holdings.

    Temasek, directly or through its units, bought 602,139 American depositary receipts (ADRs) of China’s second-largest e-commerce site JD.com Inc., with a market value of US$17.2 million. It also purchased a net 603,764 ADRs in security software maker Cheetah Mobile Inc., valued at US$12.8 million. Both companies were listed in May.

    Yuan hits five-month high

    CHINA’S yuan rose to a five-month high against the U.S. dollar Friday after data showed that capital started flowing back into the country in July after a month of outflows.

    The yuan strengthened as much as 6.1455 against the dollar, its strongest level since March 14, when it touched 6.1378. The currency closed at 6.1470, compared with 6.1531 at Thursday’s close.