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CSCL hooks more tycoons in float

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China Shipping Container Lines (CSCL) says more tycoons may step aboard its initial public offering, after yesterday setting prices that value the deal at HK$10.1 billion.

The company was holding discussions with Hong Kong corporate heavyweights that might include Sun Hung Kai Properties, with a view to supporting the issue, CSCL chairman Li Kelin said.

'We have settled deals with Hutchison Whampoa, Cheung Kong and Chow Tai Fook. We are finalising agreements with others,' he said.

Henderson Land Development was also thought to be considering taking a stake, possibly worth HK$100 million, sources said.

The 2.42 billion share offering represents 40.13 per cent of the total share capital and will be sold at between HK$3.175 and $4.175 per share, equating to a price-earnings ratio of 6.5 to 8.5 times.

The public will be eligible for 5 per cent of the offering, which starts today. Pricing will be finalised next Thursday, with trading to begin on June 16.

'Hutchison is our strategic investor and we have co-operation on many fronts. We use Hutchison's ports all over the world, including the ones at Yantian [Shenzhen] and Hong Kong,' Mr Li said.

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