In a major expansion into China's hotels sector, Top Glory International Holdings is to acquire from its parent company hotel interests estimated to be worth $1.05 billion. The acquistion will be paid for with proceeds from a share placement launched yesterday. Sources said the listed arm of Top Glory Holding - under the powerful China National Cereals, Oils and Foodstuffs Import and Export Corp - would sell about 656.4 million new shares at $1.63 a share to raise $1.06 billion. The parent would buy about 289.5 million shares and private investors would be offered the remaining 366.9 million shares, the sources said. The new shares represent 35.8 per cent of the existing capital. The placement price represents a 13.7 per cent discount on yesterday's close of $1.89, the stock's highest price since listing in 1994. Expectations of the asset injections pushed up the counter's price 45 per cent in the past two weeks. Peregrine Brokerage is arranging the sale, which will see the parent company's holding reduced to 47.7 per cent from 49.03 per cent. Sources said the acquisitions involved three hotels of a mainland chain. They said Top Glory bought Gloria Plaza hotels in Beijing and Dalian, and a 60 per cent interest in Gloria Plaza in Shenyang. The company also took a 20 per cent stake in the Shangri-La Hotel in Shenzhen. Gloria Plaza is a chain of eight four-star properties, including the 240-room Gloria Plaza Dalian. The Shenzhen Shangri-La is a five-star hotel of 553 rooms. The push into China's hotels industry is expected to widen the earnings base of Top Glory International, earnings of which have been heavily reliant on real estate development projects in China. China National Cereals is under the direct control of the powerful Ministry of Foreign Trade and Economic Co-operation.