China Merchants Holdings Pacific buys Expressway in Jiangxi for $140 million
Mainboard-listed China Merchants Holdings Pacific has agreed to buy a holding company that operates an expressway in Jiangxi, China for about $140 million.
In a filing to the Singapore Exchange, China Merchants said the acquisition of Jiurui Expressway will be financed from new issued shares and internal cash resources.
Its chief executive Luo Hui Lai said the expressway is currently loss-making due to high finance costs from bank borrowings taken up to finance its construction
And he added they have plans to restructure its existing bank borrowings to reduce its financing costs.
With the acquisition, China Merchants said its toll road portfolio will comprise 5 expressways that are diversified in 4 provinces.
The company added it will continue its strategic focus on acquiring expressways in key regions in China to develop its toll road business.
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