Asian Eco Technology Pte. Ltd., joint venture company of SGX-listed Metech International Limited has reportedly entered into a collaboration agreement with Ningbo Meishan, partner of Zongheng Capital. Ningbo Meishan plans to provide a funding of US$100 million in the lab grown diamond business activities of AET via equity financing or debt.
As per credible sources, AET has been said to have technological capabilities to manufacture the maximum grade of lab-grown diamonds and the US$100 million investment will aim to accelerate these production capabilities. The proceeds will be used for AET’s diamond manufacturing facilities construction in Singapore.
For the uninitiated, co-founded by founders and core management members of Alliance PKU Management Consultants Ltd. and the top elites of the industry, Zongheng Capital has been regarded among the earliest equity investment fund management firms in China.
Apparently, the Zongheng Capital since its establishment, has provided management consulting services to almost 5,000 medium sized and big businesses along with 500 listed firms. Zongheng reportedly accepts investment in private and listed firms specializing in main investment areas including health and medical, smart digital solutions, intelligent manufacturing and others.
As per reports, the firm, after the announcement of the collaboration, is preparing with its sponsors to take approval from its shareholder’s for a proposed business diversification of the core businesses to inculcate the distribution and manufacturing of the lab grown diamonds and other related activities.
The investment has been made at a time when the lab-grown diamond market is gaining high consumer acceptance. The exceptional properties of diamonds allow more commercialization of scientific discoveries for the industrial use of diamonds in the next generation aerospace, semiconductors, medical equipment’s, electric vehicles and other applications.
As per the agreement, AET and Ningbo Meishan will establish a joint venture at a mutually agreed time, with funds provided by Ningbo Meishan and technical expertise from AET.