Business Activities News
- Tianjin Port to buy assets from parent
Date: 31-May-2007 Sources: (Shenzhen Daily)
TIANJIN Port Co. said yesterday it would buy key assets worth 4.1 billion yuan (US$536 million) from its parent in a share placement deal.
Tianjin Port would issue up to 226 million new A shares to the group at 18.17 yuan per share, equivalent to its average trading price in the previous 20 days, it said in a statement.
The assets to be purchased, including a 90.54 percent stake in a container freight carrier, and stakes in more than a dozen other companies, would generate 396 million yuan net profit this year, it said.
It would also significantly reduce related transactions between the listed unit and its parent, Shanghai-listed Tianjin Port added.
The firm cautioned that the deal still needed the approval of shareholders and regulators.
The government is urging State-owned companies to go public to wean them away from easy bank loans and to improve their transparency.
Many, including the country's top carmaker, SAIC Motor Corp., and the biggest port, Shanghai International Port (Group) Co., have already completed restructuring via share placement deals with their listed units.
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