BACKGROUND :
SeAH Besteel acquired a stake in Lihshui Tsinghan Pipe Co. Ltd, founded in 1996 and a producer of high-quality stainless steel seamless tubes to semiconductor and automobile industries with the price and quality competitiveness based on our unrivalled technology for manufacturing ultra-precision, high-cleanliness tubes.SeAH CTC, as their Chines venture is called, decided to change the production mix and process in a new plant.
TYPE OF SALE :
We started a marketing campaign during the middle of November 2020 while the factory was still in operation. We did see this as an opportunity for a quick Private Treaty Sale, especially during COVID-19.
EQUIPMENT :
Many Pilger Mills with capacity 1.5 – 50 T/M, Horizontal straightening machine, and polishing machines
TRANSACTION :
As SeAH CTC decided to change the product mix and production process, the former Lihshui Tsinghan Pipe will close and the site will be redeveloped during the second quarter of 2021. Therefore it was essential for SeAH CTC to close a sale of the Machinery & Equipment before the end of January 2021.
HIGHLIGHT :
After our first marketing campaign, we had multiple parties who did show their interest, which allowed us to organize a sealed bid process. This helped to realize a price above asking price and close the deal before the ne of December 2020.
CONCLUSION :
During a pandemic with restricted travelling possibilities if it is challenging to sell the machinery oversees. The fact the company was still producing, convinced the buyer to proceed without visiting the factory himself. Zoom inspection, showing the plant in operation, helped the bidders make their decision.
