Closed-end investment fund Guangdong Development Fund (GDF) and Guangdong Investment will increase their stakes in Guangdong Nanfang Holdings through an asset restructure of the latter.
GDF, which is listed in London and has a secondary listing in Hong Kong, and Nanfang Building Group, a wholly-owned subsidiary of Guangdong Investment, yesterday announced they would acquire Profit Choice Properties' shareholding in Guangdong Nanfang Holdings.
GDF's interest would increase to 43.66 per cent from 24.8 per cent while Nanfang Building's would increase to 56.34 per cent.
However, the two companies would not need new equity investment in Guangdong Nanfang.
Guangdong Nanfang Holdings was set up by the three companies in 1994 to buy all four floors of the shopping mall at Guangzhou Exchange Square in Guangzhou.
Under the new agreement, Profit Choice, the developer of Guangzhou Exchange Square, has agreed to reduce the selling price of the shopping centre - Guangdong Nanfang's only asset, from US$42 million to $31 million.
