Stocks News
- Hainan Express to buy bus operator stake
Date: 21-Dec-2007 Sources: (Shenzhen Daily)
HAINAN Expressway Co. said Thursday it had agreed to buy 30 percent of a major bus operator in the southern island of Hainan, where tourism is booming, for 128.1 million yuan (US$17.31 million) in cash.
Shenzhen-listed Hainan Expressway, which operates highways and also has tourism and real estate businesses, said the stake in Hainan Haiqi Transportation Group would help it diversify revenues and develop transport-related activities. Haiqi Transportation, owned by the local government, is restructuring. Hainan Expressway said it would raise its stake in Haiqi Transportation if the bus operator's return on net assets reached 7 percent after six months to a year of operations.
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