Sichuan Expressway (601107.SH) announced that the company plans to purchase 85% equity of Hubei Jingyi Expressway Co., Ltd. ('Jingyi Company') held by Shudao (Sichuan) Venture Investment Development Co., Ltd. ('Shudao Venture') through the issuance of shares and payment of cash. As of the date of the proposal signing, the audit and evaluation work of the target company has not been completed, and the assessment value and transaction price of the target assets have not been determined. The transaction price is expected to be no more than RMB 2.2 billion. The issue price is 5.01 yuan/share.
According to Zhitong Finance APP, Sichuan Expressway (601107.SH) announced that the company plans to purchase 85% equity of Hubei Jingyi Expressway Co., Ltd. ('Jingyi Company') held by Shudao (Sichuan) Venture Investment Development Co., Ltd. ('Shudao Venture') through the issuance of shares and payment of cash. As of the date of the proposal signing, the audit and evaluation work of the target company has not been completed, and the assessment value and transaction price of the target assets have not been determined. The transaction price is expected to be no more than RMB 2.2 billion. The issue price is 5.01 yuan/share.
It is reported that the company's acquisition of 85% equity of Jingyi Company through this transaction is conducive to increasing control of high-speed road projects, further increasing the company's asset scale and expanding sources of profit. At the same time, the injection of Jingyi Company can extend the operating mileage of the company's subordinate road assets and effectively enhance the company's sustainable development capabilities.