- Home
- MediaOutReach
- Yuexiu Transport passes resolution by a vast majority of votes at special general meeting on acquisition of Lanwei Expressway
Yuexiu Transport passes resolution by a vast majority of votes at special general meeting on acquisition of Lanwei Expressway
Sabtu, 19 November 2022 | 09:04
HONG KONG SAR -
Media OutReach - 18 November 2022 -
Yuexiu Transport Infrastructure Limited (“Yuexiu Transport” or
the “Company”; stock code: 01052) today held a special general meeting
to pass resolution on the acquisition of 100% of equity interests in the
company which operates Lanwei Expressway in Henan Province from
Guangzhou Yuexiu Holdings Limited at a total consideration of RMB1.098
billion. The resolution was passed by a vast majority votes of 99.98%.
Upon completion of acquisition of Lanwei Expressway, the project will
continuously contribute to the Company’s toll revenue and profit, and
increase the earnings per share starting from 2023. The internal rate of
return of the acquisition is expected to reach 9.5%, which is rare in
the current economic environment. The Company intends to finance the
total consideration by internal resources and bank loan for acquisition
while the gearing ratio will only slightly increase from 48.4% to 52.5%,
which does not affect the Company’s financial stability. After the
announcement, both Moody's and Fitch issued the press releases and
stated that the Lanwei acquisition will have no impact on Yuexiu
Transport’s credit profile.
Over the years, Yuexiu Transport has been grasping the strategic
opportunity of “promoting the rise of Central China”, continuing to
explore projects in high quality in Central China region. Up to now, it
has successfully acquired seven projects in Henan, Hubei, and Hunan,
forming a development paradigm of “gaining a foothold in the
Guangdong-Hong Kong-Macao Greater Bay Area and developing in Central
China region”. This acquisition of Lanwei Expressway is another asset
expansion for the Company to enter the Central China region. After the
acquisition, the asset scale, revenue scale and profitability will be
further enhanced, while the toll mileage of the Company’s controlled
expressways will increase from 495.2 km to 556.23 km, representing an
increment of approximately 12.3%.
Lanwei Expressway has been in operation for nearly 17 years since it
opened to traffic in 2005. It has a total mileage of 61.03 km while the
expressway networks connecting to Lanwei Expressway are all very mature
and stable. The Company is optimistic about the economic development in
Central China in the long run. The acquisition of Lanwei Expressway
aligns with the Company’s strategy of developing in the Central China
region and the Company believes that Lanwei Expressway, located in the
core development areas of the Central Chinese Plain city clusters, will
continue to benefit from the regional strategic developments such as the
“Rise of Central China” as well as the construction of the Central
Chinese Plain city clusters and the Zhengzhou Metropolitan Area. At the
same time, the connection between Lanwei Expressway and Weixu
Expressway, a project wholly-owned by the Company, fosters a more united
and consistent approach of operation management and facilitates the
Company to set up a district-based management and control model, which
can provide economies of scale and enhance management efficiency.
Yuexiu Transport expresses that the acquisition will enhance its
shareholders’ value and replenish the Company’s quality asset portfolio
after the spin-off and listing of Han-Xiao Expressway though the public
offering of Expressway REIT. After the establishment of REITs platform,
Yuexiu Transport will proactively pursue quality project reserve and
strike a balance between “investment and divestment of the assets”. The
asset injection of Lanwei Expressway to the listed company is a major
initiative of the Company’s development strategy in 14th Five-Year Plan,
which allows the Company to consistently promote the interactions of
the three platforms.
BERITA LAINNYA
BERIKAN KOMENTAR