Shanghai-based technology company Retech (ASX:RTE) has announced a leading Hong Kong investment company Huarong will become a major shareholder in the company, in a transaction that is expected to be completed next week.
Huarong, which runs direct investment, financial services and construction businesses in Hong Kong and China, will have about a 20 per cent interest in the company.
The proceeds from the transaction will be used to fund Retech’s strategic expansion in Australia, Hong Kong and Japan, research and development initiatives, and contribute to its working capital.
As part of the transaction, the investor has nominated Ma Hok Wang as a non-executive director of the Retech board, who joined Huarong in May this year coming from seven years’ experience in investment banking.
The company said the shareholding will strengthen Retech’s brand awareness in Hong Kong and China with the potential to open up more commercial opportunities.
Shares in Retech (ASX:RTE closed flat at 50 cents a share.