Hong Kong-based PYI Corporation Limited<498>, a Chinese group of bulk cargo port and infrastructure, plans to acquire 12.32% stake in Nantong Port Group Limited with no more than RMB 1 billion from SDIC Communications Co, announced the company in a statement.
PYI has bought 45% stake in Nantong for RMB 430 million over the last two years. With the new acquisition, PYI will hold controlling stake of 57.32% in Nantong Port, to make the latter one of PYI’s subsidiaries.
PYI’s purchases in the port group have appreciated by 250%, as the group’s equity is now eight times of its value two years ago. The new acquisition will ensure PYI’s dominant position in Nantong Port. Currently Nantong State-owned Assets Investment Holding Limited owns 42.68% of Nantong and SDIC Communications, a wholly-owned subsidiary of State Development and Investment Corp, holds the remaining 12.32%.
Overseas companies were allowed to take dominant stake in public ports since 2002. However, it is still rare for a company to take over an existing port in China.
PYI has bought 45% stake in Nantong for RMB 430 million over the last two years. With the new acquisition, PYI will hold controlling stake of 57.32% in Nantong Port, to make the latter one of PYI’s subsidiaries.
PYI’s purchases in the port group have appreciated by 250%, as the group’s equity is now eight times of its value two years ago. The new acquisition will ensure PYI’s dominant position in Nantong Port. Currently Nantong State-owned Assets Investment Holding Limited owns 42.68% of Nantong and SDIC Communications, a wholly-owned subsidiary of State Development and Investment Corp, holds the remaining 12.32%.
Overseas companies were allowed to take dominant stake in public ports since 2002. However, it is still rare for a company to take over an existing port in China.