Shenzhen Expressway is shuffling assets worth 69.46 million yuan (about HK$64.59 million) between two of its subsidiaries, partly to satisfy mainland shareholder laws.
The H share - which builds and operates highways for the Shenzhen municipality - said yesterday it would inject a 45 per cent interest in its wholly owned subsidiary, Meiguan, into its 55 per cent-held subsidiary Jihe.
Meiguan's principal business is to operate and manage the Meiguan Expressway, while Jihe operates the Jihe Expressway, both highways in Guangdong province.
Shenzhen Expressway said it had acquired the 45 per cent stake in Meiguan from Treasure Eagle Investment, a wholly owned subsidiary of Hong Kong-listed Road King Infrastructure, in March.
Mainland company law requires Meiguan to have at least two shareholders, necessitating the asset shuffle, the firm said.
The company considered 'that Meiguan Expressway has good growth prospects and the company as a whole would be benefited' by the acquisition of the asset.
