Core Viewpoint - The company, Yuexiu Transportation Infrastructure, has announced the conditional sale of an 85% stake in Shandong Qinbin Expressway for a total price of RMB 1.1535 billion, which aligns with its regional expansion strategy and aims to capitalize on the economic growth in the eastern coastal region of China [1][2]. Group 1 - The transaction involves a conditional agreement between a related party of the company and a wholly-owned subsidiary, with the completion of the deal subject to certain preconditions [1]. - Upon completion, the company will indirectly hold 85% of the target company, which will become a non-wholly owned subsidiary, and its financial performance will be consolidated into the company's financial statements [1]. - The Qinbin Expressway is a crucial coastal highway in the Bohai Rim region and is part of the national expressway network, enhancing the company's strategic positioning in a key economic area [1]. Group 2 - The expressway's segments have varying expiration dates, with the section from Chengkou to Zhanhua expiring in 2045 and the section from Lujijian to Chengkou expiring in 2047, which will extend the weighted average remaining operating rights of the company's controlled expressways by approximately 0.8 years [2]. - The target company is projected to generate approximately RMB 752.5 million in revenue for the full year of 2024, contributing positively to the company's income sources post-acquisition [2]. - The target company is expected to remain profitable after the acquisition, providing beneficial support to the company's asset portfolio, especially in light of the upcoming expiration of other projects and ongoing construction affecting revenue and profits [2].
越秀交通基建(01052)拟11.535亿元收购山东秦滨高速公路的85%股权