Business Activities News
- Guangdong News
Date: 7-Dec-2006 Sources: (Shenzhen Daily)
GUANGZHOU Baiyun International Airport Co. said yesterday it would issue shares through private placement to buy 2.03 billion yuan (US$256 million) worth of assets from its parent company.
Under the agreement, Baiyun would acquire two runways, taxi strips and an aircraft parking area at the Baiyun airport in Guangzhou, from Guangdong Airport Management Corp., the company said in a statement.
Following the proposed acquisition, Baiyun International would own all of the core aviation-related assets at Baiyun airport, increasing the listed company's share of revenue from the airport, the statement said.
The Securities Times, citing unnamed company sources, said Guangzhou Baiyun planned to issue no more than 150 million A shares at a minimum of 7.09 yuan each, and the parent company would take up at least 90 percent of the share placement.
'The company's fundamentals are quite good, so now we see its shares catching up after the suspension,'said stock market analyst Zhou Lin at Huatai Securities.
The planned acquisition is aimed at improving Guangzhou Baiyun's core business and reducing connected transactions with its parent, the paper said.
Shanghai International Airport Co. said last month that it was also considering a group listing, but has yet to decide the timetable and other details.
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