Tianjin Port Co, operator of the busiest port in northern China, says it has received "conditional" regulatory approval for a private share placement to buy assets worth 4.1 billion yuan (US$556 million) from its parent.
In May it said it planned to issue up to 226 million new A shares at 18.17 yuan each to acquire berths and the container handling business from its state-owned parent, Tianjin Port (Group) Co.
China Securities Regulatory Commission gave approval for the deal on Friday with some conditions, Tianjin Port said in a brief statement to the Shanghai Stock Exchange, without elaborating. Formal approval is expected later, it said.
After the announcement, Tianjin Port rose 2.56 percent to 24.88 yuan yesterday when its shares resumed trading after a suspension on Friday. The Shanghai Composite Index was down 2.62 percent.
The deal would reduce business overlap between Tianjin Port and its parent and the amount of connected transactions, as well as improve the firm's business and earnings, it said in May.
The acquisitions could add 396 million yuan to its 2007 profit, the company said then. Tianjin Port reported net income of 437.2 million yuan in the first nine months of this year.
(Shanghai Daily December 18, 2007)
