It is reported that Qihang Equipment Company has entered into an agreement for the acquisition of the entire issued share capital of Zhenjiang Anda Coal Mine Special Equipment Company.

The acquisition will cost approximately GBP 3.6 million and will be met from existing cash resources. CM Special Equipment is a manufacturer of coal mining equipment such as drilling machines, pumps, dust catchers, drill pipe and accessories.

The acquisition of CM Special Equipment will open an entirely new machine market to the Company increase its revenue and profitability and, it is hoped, lead to increased operational efficiencies through shared sales and research & development channels.

During the year ended 31 December 2011, CM Special equipment recorded an unaudited turnover of CNY 67.38 million.

(Sourced from StockMarketWire.com)