CMPF today hold a EGM to approve the acquisition of Hong Kong Honest Queen International Investment Limited which is the holding company of Jiurui Expressway Co.It was overwhelming majority approved.
It will issue 119,374,987 shares at 0.985 apiece which will raised approx. RMB580m. In addition, it will pay an additional RMB117m cash for a total consideration for a total of RMB697m for the purchase. The issued share will be about 16% of total ordinary share capital issued.
Net Asset Value after purchase will be at HK$5.82. EPS will be at 52.09 HK cents.Gearing will be at 30%. All are calculated based on full diluted convertible bond conversion.
Jiurui is a 48km expressway in Jiangxi with toll lease lasting till dec 31 2040.
The current deal look much more attractive than the previous proposal that was dropped due to some issues with getting approval for the NZ property business that was also packaged in the proposal.