Textile and property company Island Dyeing and Printing is negotiating with mainland-backed parties over potential asset injections. These may involve a share sale that triggers a general offer. Director Peter Fung Yiu-fai said the negotiations involved China parties injecting assets into the company in exchange for new Island Dyeing shares. Acquiring a controlling stake in the company and an interest in the company's factory in Kwai Chung - its major asset - were also part of the negotiations. 'Discussions are still at a preliminary stage,' Mr Fung said. Price of shares in Island Dyeing, which is 33.7 per cent-owned by SHK Hong Kong Industries, increased more than 40 per cent last week to close at $13.55 on Friday. The company in April secured initial approval from the Government to rebuild its 900,000-square-foot factory into a 500-room hotel and 500 serviced apartments. The development was estimated to cost $1 billion, excluding the land premium. SHK Hong Kong Industries said it was still assessing the Government's proposed land premium of $805 million.