HONG KONG-based Fairyoung Holdings will join with the Asian Infrastructure Fund (AIF) to develop ports in China.
Under a subscription and shareholder agreement, AIF will pay Fairyoung Port Investments Holdings, a subsidiary of Fairyoung, US$50 million for a 49 per cent stake through the issue of new shares.
AIF is expected to put in an additional $5 million.
Both parties declined to reveal the number of new shares issued.
Fairyoung Holdings managing director John Chan said the company would increase its ownership in the subsidiary to 70 per cent by 1997 through the enlargement of its share capital.
As AIF will not be putting in additional investment monies, its shareholding will then be reduced to 30 per cent.
The investment in the subsidiary is expected to reach $167 million by 1997.
