01/11/2019 | Press release | Distributed by Public on 01/11/2019 06:30
CMPort signs two Capital Increase Agreements to finalize
Land Development Project in Qianhai-Shekou Free Trade Zone
On 11 January 2019, China Merchants Port Holdings Company Limited ('CMPort' or 'the Group', SEHK Code: 00144) entered into two Capital Increase Agreements to further facilitate the transactions in relation to the Qianhai Land development project, for the purpose of establishment of another joint venture company named Shenzhen Qianhai Shekou Free Trade Investment Development Company Limited ('C1 Company') with Shenzhen Qianhai Shenzhen-Hong Kong Modern Services Commission ('QHSH') to develop the Qianhai-Shekou Free Trade Zone，in order to promote the long-term development of the Group.
With reference to the announcement made by CMPort dated 24 December 2018 in relation to the Land Restructuring Agreement, CMPort, China Merchants Shekou Industrial Zone Holdings Company Limited and its subsidiaries, Shenzhen China Merchants Shekou Asset Management Company Limited (collectively 'Land Holding Companies') will resume an aggregate industrial land area of 2.9 million square meters ('Aggregate CM Land') to QHSH in exchange of approximately 425,300 square meters new land ('New Land') to the Shenzhen China Merchants Qianhai Chidi Asset Company Limited ('A2 Company'), in which CMPort indirectly holds 14%, for commercial usage.
Pursuant to the two Capital Increase Agreements, the Land Holding Companies agreed to inject capital amount of RMB43.21 billion to A2 Company for the amount of New Land within 30 business days of the satisfaction of the conditions precedent. Furthermore, the Land Holdings Companies agreed to further inject a maximum amount of RMB15 billion to A2 Company within six months of the satisfaction of the conditions precedent, for fund contribution to C1 Company for the difference between the value of New Land and the value of a land with an area of approximately 501,443 square meters ('QH Land') to be injected by QHSH.
Upon all agreements executed, C1 Company will hold approximately 926,743 square meters lands in Qianhai-Shekou Free Trade Zone for development in order to generate future investment returns.
Please refer to the announcement of the Group for more details.