China Merchants (International) Co Ltd said it will pay 847 million (US$119.54 million) to acquire 5.4 per cent stake in Ningbo Port, which is seeking a dual listings in Hong Kong and the mainland this year, Xinhua reported.
China Merchants and six other initiators including Ningbo Port Group, have agreed to set up a joint venture named Ningbo Port Co Ltd, which is expected to launch IPO in Hong Kong and Shanghai before the 2008 Olympic Games begins, China Merchants said in a statement.
Ningbo Port Group, will inject CNY14.12 billion worth of port-related assets into Ningbo Port Co Ltd and hold 90 per cent shares, the report said.
China Merchants will be the second largest shareholder with 5.4 per cent, while the other initiators will own the remaining 4.6 per cent, reports Xinhua.
China Merchants will buy 583.2 million shares of Ningbo Port Co Ltd upon its establishment and the deal will be funded by internal cash resources, the report said.
Earlier this year president of Ningbo Port Group Li Linghong said Ningbo Port, operator of one of the busiest deep-water ports in China, was looking to go public both in the mainland and in Hong Kong in 2008 to fund for expansion.
Mr Li said the port would add three berths this year to boost its handling capacity to 10 million TEU a year.
Ningbo port, consisting of five port areas of Beilun, Zhenhai, Ningbo Old Port, Daxie and Chuanshan, is the second largest port in China in terms of cargo throughput. The port handled 345 million tons of cargo in 2007.
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