Business

Editor: evewen
8 Sep 2008 10:29:40 GMT

Sep. 8, 2008 (China Knowledge) – The world’s largest quayside crane maker Shanghai Zhenhua Port Machinery Co<600320><900947> announced that it plans to sell about 170 million shares to its shareholder, China Communications Construction Co Ltd<1800>, the top infrastructure builder in the country, via a share placement, at a price of RMB 17.78 apiece, or RMB 3.02 billion in total.

After the deal, Shanghai Zhenhua Port Machinery, which is 24.9% owned by China Communications Construction, would hold 100% stake in China Communications Shanghai Port Machinery Co Ltd and 60% stake in Shanghai Jiangtian Co. Ltd.

The new shares have a lock-up period of 36 months.

The Shanghai-based company announced in April that it was mulling to issue as many as 140 new shares at a price of RMB 17.78 apiece, or RMB 2.49 billion via a private placement to fund its purchase of two units from parent.

Shares of Shanghai Zhenhua Port Machinery slightly edged up 0.6% to close at RMB 10.03, despite the diving Shanghai Composite Index, while shares of China Communications Construction tumbled 6.15% to close at HK$10.10 on Friday.