Toshiba, Chevalier to further explore China market

Toshiba Elevator and Building Systems Corporation (TELC), one of the world's leading companies in elevators, escalators and moving walks, has inked a preliminary agreement with Hong Kong-based Chevalier International Holdings Limited (CIHL)<25> on further exploring global market, especially the elevator and escalator business in China and Southeast Asia.

Under the terms of the agreement, Tokyo-headquartered TELC will acquire a 49% stake in CIHL's Hong Kong unit by the end of March 2009, and expand the shareholding to 51% by March 2010, while CIHL will take 20% stake in TELC's subsidiaries in China by the end of March 2009.

Meanwhile, TELC will be entitled to appoint directors to Chevalier (Hong Kong) Ltd through the equity-based partnership.

TELC and CIHL have started cooperation since 1970 and CIHL is the exclusive distributor of Toshiba elevators in Hong Kong and Singapore.