China Merchants Holdings (International) Co Ltd said on Tuesday it agreed to pay 847.3 million yuan ($119.3 million) for a 5.4 percent stake in Ningbo Port, which will seek a dual listing in Hong Kong and the mainland this year.
A China Merchants unit and six other promoters, including Ningbo Port Group, agreed to set up a joint stock company with limited liability in China to be named Ningbo Port Co Ltd, China Merchants said in a statement.
China Merchants will subscribe for 583.2 million shares in Ningbo Port Co upon its establishment and the deal will be funded by internal cash resources, it added.
Ningbo Port Group, which will hold 90 percent of the new company, will inject 14.12 billion yuan worth of port-related assets into Ningbo Port Co.
The other promoters will own the remaining 4.6 percent of the company.
Ningbo Port Group's president, Li Linghong, said earlier this month that Ningbo Port, the operator of one of China's busiest deep-water harbours, was looking to float shares both on the mainland and in Hong Kong in 2008 to fund its expansion.
Li said the port would add three berths this year to boost its handling capacity to 10 million twenty-foot equivalent units (TEUs) a year.
A China Merchants unit and six other promoters, including Ningbo Port Group, agreed to set up a joint stock company with limited liability in China to be named Ningbo Port Co Ltd, China Merchants said in a statement.
China Merchants will subscribe for 583.2 million shares in Ningbo Port Co upon its establishment and the deal will be funded by internal cash resources, it added.
Ningbo Port Group, which will hold 90 percent of the new company, will inject 14.12 billion yuan worth of port-related assets into Ningbo Port Co.
The other promoters will own the remaining 4.6 percent of the company.
Ningbo Port Group's president, Li Linghong, said earlier this month that Ningbo Port, the operator of one of China's busiest deep-water harbours, was looking to float shares both on the mainland and in Hong Kong in 2008 to fund its expansion.
Li said the port would add three berths this year to boost its handling capacity to 10 million twenty-foot equivalent units (TEUs) a year.