Property giant New World group will make its second strategic investment in an H-share company with the purchase of a 9.6 per cent stake in Beijing North Star Co, expected to raise $1.23 billion in a Hong Kong listing next month.
New World China finance manager Johnny Chiu confirmed the company was intent on buying the stake, but declined to give details.
'We will become North Star's strategic partner and that will immediately enhance our land bank and investment portfolio in Beijing,' he said.
HSBC James Capel Asia said North Star, backed by the Beijing municipal government, will issue 614.8 million shares, or 34.6 per cent of the company's enlarged share capital, after listing at $2 each.
Based on that price, New World will have to pay about $340 million for the stake.
HSBC Investment Bank Asia is the sponsor for North Star, a candidate of China's fourth batch of mainland companies scheduled for overseas flotation.
After the listing, North Star's parent will maintain a 65.4 per cent shareholding, with the public owning the remaining 25 per cent.
