Greentown China Holdings Ltd. subsidiary Greentown Ideal Town Construction Group Co. Ltd. entered into a deal to form a joint venture with two associates of China Communication Constructions Group (Ltd.), a substantial shareholder of the company.
The joint venture between Greentown Ideal, CCCC Investment Co. Ltd. and CCCC Southwest Investment and Development Co. Ltd. was primarily formed to undertake the preliminary development works at the China Agricultural Expo Town in Chengdu, China, comprising characteristic towns, pastoral complexes and other projects, according to a filing.
Greentown Ideal, CCCC Investment and CCCC Southwest Investment will contribute respective capital of 180 million yuan, 184 million yuan and 36 million yuan toward the joint venture, accounting for 45%, 46% and 9% of its 400 million yuan registered capital.
Funding for Greentown Ideal's capital contribution will come from internal resources and/or external financing.
As of Feb. 1, US$1 was equivalent to 6.30 yuan.
