|
CNBC'S MOST SHARED
- 'We're in the Middle of a Crash': Black Swan
- The Rising Mountain of Debt May Be the Next Crisis
- Latvian Banker Taking Souls as Collateral
- SEC May Reinstate Rules for Short-Selling Stocks
- The Worst Expected 2010 State Budget Gaps
- Alaska Governor Sarah Palin Will Resign
- Cuddle Parties Heat Up
- Malaysia PM Speaks to CNBC
- NY City Apartment Sales Down More Than 50%
- Charting Gold & Crude Oil
- Schwarzenegger Signals Key Budget Concession
- Palin's Resignation May Hurt Her Future
- North Korea Fires 7 Missiles Off East Coast
- The Rising Mountain of Debt May Be the Next Crisis
- Drug Bust Nets Heroin Stuffed in Build-A-Bear Toys
- For Banks, Wads of Cash and Loads of Trouble
- SEC May Reinstate Rules for Short-Selling Stocks
- Vatican Runs Deficit Amid Economic Crisis
- Earnings Season: A Likely Game-Changer
- Fireworks At Pharma's Market
- Value of Warren Buffett's Annual Gift to Gates Foundation Falls Along With Berkshire's Stock
- Michael Jackson: The Music And The Money
- Five Stock Picks for This Market
- Realities of the New Obama Refis
- Weak Dollar Means Gold at $1,040: Strategist
- Court Ruling Could Mean Trouble for TiVo
- Lance, Please Back Out Of Tour
- TeleMedicine Gets An Apple App Store Facelift
Text Size 
Franshion Properties said on Friday it would a buy Chinese high-end real estate development and management firm for 11 billion yuan ($1.6 billion), as it seeks to become a top tier property investor in the mainland.
The China property investor said it would buy 54.87 percent of China Jin Mao from its major shareholder, Sinochem Hong Kong, for 6.04 billion yuan, of which 2.4 billion yuan would be paid in cash with the remainder to be settled through the issue of 1.49 billion new shares at HK$3.43 each.
That price represents a 3.7 percent discount to the stock's HK$3.56 closing price on Thursday.
Franshion will buy a further 45.13 percent stake in Jin Mao from seven other shareholders for 4.96 billion yuan. Some 40 percent of the purchase will be paid for in cash, with the remainder settled by issue of 970.1 million new shares at the same price of HK$3.43 each.
Jin Mao, a Chinese high-end real estate development and management firm, has equity interests in Jinmao Tower, Hilton Sanya Resort & Spa, JW Marriott Shenzhen, the Ritz-Carlton, Sanya and the Westin Beijing.
"The acquisition will significantly elevate the assets scale and quality of the company's office and hotel portfolio," Franshion chairman Pan Zhengyi said in the statement.
"In addition, the acquisition will provide the company with the opportunity to strengthen its presence and leadership in tier-1 cities, and expand into new cities and overall enhance market share."
Franshion also said it was in preliminary talks with its ultimate parent Sinochem Corporation on the possible acquisition of Sinochem Corporation's interests in Shanghai Yin Hui Property Development, but no agreement had yet been reached.
Print
Email
Data is a real-time snapshot *Data is delayed at least 15 minutes