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1.
Paul Y pays $520m for port stake
1. Paul Y pays $520m for port stake
Dennis
Eng, The Standard 15 April 2004
Paul
Y-ITC Construction Holdings is to splash out HK$520.8 million for
a majority stake in a Yangkou Port project in Nantong, Jiangsu province.
The
investment, through Paul Y-ITC's wholly owned unit, Century Harbour,
will be funded by existing cash and bank facilities.
It
will give the holding company, whose operations include building
construction, civil engineering, specialist works, and property
leasing, a 54.06 per cent interest in Jiangsu Yangtong Investment
and Development Company.
Jiangsu
Yangtong, a Sino-foreign joint venture incorporated five months
ago, will build and operate the port for 50 years from October 28
last year.
Paul
Y-ITC said the deal was significant because it was vital deep water
and river port facilities be developed with the rapid growth of
China's economy.
In
a company announcement it said there was a need for more logistics
facilities to handle ``strategic raw materials and fuel'', essential
for sustained economic development.
Paul
Y-ITC also said well-sited, sizeable facilities would result in
``satisfactory recurring returns being earned for owning and operating''
the facilities.
Under
the agreement, Century Harbour will acquire 90.1 per cent of Global
Achiever Limited. Global Achiever, a holding company, indirectly
controls a 60 per cent interest in Jiangsu Yangtong. State-owned
Jiangsu Yangkou Port Investment holds 40 per cent. The remaining
9.9 per cent of Global Achiever's issued share capital will continue
to be held by its parent, Steady Forth Limited.
Paul
Y-ITC said it expects both Global Achiever and Jiangsu Yangtong
Investment's accounts will be consolidated into its books.
Jiangsu
Yangtong's registered capital is US$30 million.
Global
Achiever will contribute about US$18 million in cash and Jiangsu
Yangkou Port Investment will inject assets in the form of land and
marine rights worth about US$12 million.
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