CITIC Pacific is planning to take strategic stakes or interest in Hong Kong's cross harbour tunnels in a $3.8 billion share placement.
In a complex deal involving property and another purchase in the mainland, the China-backed company is taking up the stakes of its parent, CITIC HK, in the territory's cross harbour tunnels. These include the western harbour tunnel, due for completion in1997, and the eastern harbour tunnel.
It will also use the money to buy into a Shanghai tunnel project and pay off debts totalling more than $900 million.
A broker said: ''The deal is being done at a fair price and the shares were picked up like hot cakes.'' In Hong Kong, CITIC Pacific has property valued at around $10 billion and has stakes in Hongkong Telecom, Cathay Pacific, Dragonair and Manhattan Card.
