China Jinmao Holdings Group Ltd. is planning to purchase the remaining 50% equity stakes in two non-wholly owned units from shareholder Shanghai International Port (Group) Co. Ltd.
China Jinmao was previously considering selling its respective 50% interests in Shanghai Yin Hui Real Estate Development Co. Ltd. and Shanghai International Shipping Service Center Co. Ltd. through a listing on the Shanghai United Assets and Equity Exchange.
Following a formal disclosure by Shanghai International Port of its stakes' sale on the same bourse, the company withdrew from its divestment plans and instead intends to uphold its statutory pre-emption right.
China Jinmao subsidiary Changsha Rongmao Enterprise Management Co. Ltd. will participate in the bidding process for the public listing, with minimum bids starting from about 1.91 billion yuan and 949.9 million yuan for the 50% interests in Shanghai International Shipping and Shanghai Yin Hui, respectively.
As of Dec. 12, US$1 was equivalent to 6.62 Chinese yuan.
