The company has announced that it plans to invest RMB 1.6 bln to acquire shares of Hu Han Rong Railway Hebei Co. Ltd to participate in the construction of Hu Han Rong railway.

Hu Han Rong is mainly engaged in the investment and construction of the Hubei section of Hu Han Rong railway, which is 448.1 km in length. The Hubei section of Hefei-Wuhan railway is 155 km long, with a total investment of RMB 13 bln. The Wuhan-Yichang railway is 293.1km with a total investment of RMB 23.76 bln.
Hu Han Rong Railway Hebei Co. Ltd was established in December 2007 with total registered capital of RMB 280.78 mln, of which, RMB 200 mln was contributed by Wuhan Railway Bureau, accounting for 71.23%, RMB 43.27 mln was invested by Hubei Province Passenger Rail Investment Co. Ltd, accounting for a 15.41% stake and RMB 37.51 mln was invested by Wuhan Urban Construction and Investment Group Co. Ltd, accounting for 13.36% stake. As a new investor, the company will additionally invest RMB 1.6 bln in cash. Upon completion of the construction of the railway and following related adjustments, the total registered capital of the Hu Han Rong Company will be RMB 15.83 bln and the company will account for a 10.11% stake.


Source: China Business Journal

Date: 9 Jul 2008

CN01/BG/RZ/AR/WH