Shandong Mining Machinery Group (002526), a maker of drag conveyors and hydraulic supports, plans to set up a 220 million yuan joint venture with Pingmei Shenma Machine Equipment Group, and the former will contribute 101.2 million yuan for a 46 percent stake, reports yicai.com, citing a company filing.
Shenma Machine will pay 107.8 million yuan for a 49 percent stake, with the remaining shareholding of five percent to be held by the joint venture's core employees.
The joint venture will engage in the production, sales and maintenance of equipment used in the mining industry.
Pingmei Shenma Machinery, a wholly-controlled subsidiary of China Pinma Shenma Group, has a registered capital of 361.07 million yuan.
According to the filing, the proposed cooperation will utilize the advantages of both parties to consolidate their market share in Henan province.

Source:capitalvue.com