Advertisement
Advertisement
Royal Dutch Shell
Get more with myNEWS
A personalised news feed of stories that matter to you
Learn more

Loan converted into road stake

Home electrical appliance maker Shell Electric Mfg (Holdings) has reached an agreement with mainland debtors to recoup a US$49.41 million loan.

The settlement marks the latest chapter of Shell's investment saga in a toll road since 1994, in which the company committed US$100 million.

The US$49.41 million loan was part of Shell's effort to realise its investment in the project following delays in construction and operations.

Shell said yesterday it had signed a settlement agreement with mainland debtors including Shunde City Highway Construction Corp and an investment arm of Shunde municipal government, which would transform the loan into a 52 per cent stake in the toll road.

Payment of the loan has been delayed since last November even though Shell realised US$49.5 million in the past few years.

The toll road generated a profit after tax of HK$5.84 million in the first 11 months of last year, against HK$3.25 million for the 12 months ending December 1998.

ACQUISITIONS

Post