Sohu's Sogou Buys Back 10% Stock from Alibaba
Sogou.com, the search engine operated by Sohu.com Inc (Nasdaq: SOHU), has bought back a 10% stake held by Alibaba Group, China's top e-commerce service provider, Sogou CEO Wang Xiaochuan said in an internal email. Alibaba purchased the stake for $15 million in October 2010. Wang did not disclose the amount Sogou paid this time. Wang previously said Sogou's revenue was expected to range between $100 million and $150 million this year.
Ming Yang Wind Power to Tap Into India
China Ming Yang Wind Power Group Ltd (NYSE: MY), a wind turbine manufacturer, said it plans to explore the Indian market by acquiring Global Wind Power Ltd, a subsidiary of Reliance Group, and building a 2,500MW clean energy project in the country. Ming Yang Holdings Singapore Pte Ltd will purchase a majority stake in Global Wind and form a joint venture with Mumbai-listed Reliance Capital Ltd. No financial details were given for the acquisition. China Ming Yang Wind Power Group will work with Reliance Power Ltd for the clean energy project.
Chinese Carriers to Benefit from Cheaper Fuel
The average sourcing price of aviation fuel in China has been reduced by ¥740 to ¥6,724/ton, easing the financial burden that has been mounting on the nation's carriers. It is estimated that the cut would save China Southern Airlines Ltd (NYSE: ZNH, SHA: 600029, HKG: 1055), China Eastern Airlines Corp (NYSE: CEA, SHA: 600115, HKG: 0670) and Air China Ltd (SHA: 601111, HKG: 0753), the country's top three airlines, ¥2.78 billion, ¥2.19 billion and ¥1.86 billion respectively this year. The amounts would represent 11.86%, 11.19% and 8.19% respectively of their operating costs in Q1 2012.
Wuhan Steel Calls Off Brazil Plan
Wuhan Iron & Steel Co (SHA: 600005), China's fourth largest steelmaker, has abandoned its plan to build a plant in Brazil due to higher-than-expected uncontrollable risks in logistics, coking coal supplies and market conditions, two people with knowledge of the matter told the 21st Century Business Herald. The company's business in Brazil started with a deal in which Wuhan Steel paid $400 million in November 2009 for a stake in an iron ore project known as MMX, becoming its second largest shareholder. It was later invited by EBX, the largest shareholder of MMX, to build a 70:30 local joint mill, with Wuhan Steel holding the majority stake. The steel mill, capable of producing five million tons, was originally scheduled to become operational this year.
Suning Set to Open Laox Store in Beijing
Suning Appliance Co (SHE: 002024), China's largest chain store by revenue, said it will open its first Laox outlet in Beijing on July 20. Laox is a Japanese electronics retailer Suning acquired in 2010. Laox's first store in Beijing will cover 12,000m2, and 30% of its goods will be imported. Suning plans to open five Laox stores in Beijing and 18 nationwide this year.
$1 = ¥6.35