IN a major expansion into China, the Wah Nam group is investing in a joint venture to operate and develop a toll road in Hangzhou.
As part of the deal, it is bringing in leading Malaysian engineering group Promet as a partner and shareholder.
Wah Nam, formerly known as Holian Investments, is placing 192.5 million shares with Promet, and issuing a US$9 million convertible note to the Malaysian group.
The placement will raise about HK$38 million, which will be used to finance the joint venture, and when completed, it will leave Promet with a 16.67 per cent stake in the enlarged capital of Wah Nam.
Under the terms of the convertible note, this will increase to 31.84 per cent if the Malaysian group exercises its rights from January 1996.
Promet is subscribing for the stock at 20 cents per share, compared with 19 cents, at which the shares were quoted ahead of their suspension last week.