Media OutReach<\/b><\/a> – 18 November 2022 –
\nYuexiu Transport Infrastructure Limited<\/b> (\u201cYuexiu Transport\u201d or the \u201cCompany\u201d; stock code: 01052) today held a special general meeting to pass resolution on the acquisition of 100% of equity interests in the company which operates Lanwei Expressway in Henan Province from Guangzhou Yuexiu Holdings Limited at a total consideration of RMB1.098 billion. The resolution was passed by a vast majority votes of 99.98%.<\/p>\nUpon completion of acquisition of Lanwei Expressway, the project will continuously contribute to the Company\u2019s toll revenue and profit, and increase the earnings per share starting from 2023. The internal rate of return of the acquisition is expected to reach 9.5%, which is rare in the current economic environment. The Company intends to finance the total consideration by internal resources and bank loan for acquisition while the gearing ratio will only slightly increase from 48.4% to 52.5%, which does not affect the Company\u2019s financial stability. After the announcement, both Moody’s and Fitch issued the press releases and stated that the Lanwei acquisition will have no impact on Yuexiu Transport\u2019s credit profile.\n<\/p>\n
Over the years, Yuexiu Transport has been grasping the strategic opportunity of \u201cpromoting the rise of Central China\u201d, continuing to explore projects in high quality in Central China region. Up to now, it has successfully acquired seven projects in Henan, Hubei, and Hunan, forming a development paradigm of \u201cgaining a foothold in the Guangdong-Hong Kong-Macao Greater Bay Area and developing in Central China region\u201d. This acquisition of Lanwei Expressway is another asset expansion for the Company to enter the Central China region. After the acquisition, the asset scale, revenue scale and profitability will be further enhanced, while the toll mileage of the Company\u2019s controlled expressways will increase from 495.2 km to 556.23 km, representing an increment of approximately 12.3%.\n<\/p>\n
Lanwei Expressway has been in operation for nearly 17 years since it opened to traffic in 2005. It has a total mileage of 61.03 km while the expressway networks connecting to Lanwei Expressway are all very mature and stable. The Company is optimistic about the economic development in Central China in the long run. The acquisition of Lanwei Expressway aligns with the Company\u2019s strategy of developing in the Central China region and the Company believes that Lanwei Expressway, located in the core development areas of the Central Chinese Plain city clusters, will continue to benefit from the regional strategic developments such as the \u201cRise of Central China\u201d as well as the construction of the Central Chinese Plain city clusters and the Zhengzhou Metropolitan Area. At the same time, the connection between Lanwei Expressway and Weixu Expressway, a project wholly-owned by the Company, fosters a more united and consistent approach of operation management and facilitates the Company to set up a district-based management and control model, which can provide economies of scale and enhance management efficiency.\n<\/p>\n
Yuexiu Transport expresses that the acquisition will enhance its shareholders\u2019 value and replenish the Company\u2019s quality asset portfolio after the spin-off and listing of Han-Xiao Expressway though the public offering of Expressway REIT. After the establishment of REITs platform, Yuexiu Transport will proactively pursue quality project reserve and strike a balance between \u201cinvestment and divestment of the assets\u201d. The asset injection of Lanwei Expressway to the listed company is a major initiative of the Company\u2019s development strategy in 14th Five-Year Plan, which allows the Company to consistently promote the interactions of the three platforms.\n<\/p>\n
Hashtag: <\/b>#YuexiuTransport<\/p>\n
\n The issuer is solely responsible for the content of this announcement.<\/em>\n <\/p>\n<\/p><\/div>\n\n
Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"HONG KONG SAR – Media OutReach – 18 November 2022 – Yuexiu Transport Infrastructure Limited (\u201cYuexiu Transport\u201d or the \u201cCompany\u201d; stock code: 01052) today held a special general meeting to pass resolution on the acquisition of 100% of equity interests in the company which operates Lanwei Expressway in Henan Province from Guangzhou Yuexiu Holdings Limited …<\/p>\n","protected":false},"author":1,"featured_media":27856,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[60],"tags":[],"_links":{"self":[{"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/posts\/27855"}],"collection":[{"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/comments?post=27855"}],"version-history":[{"count":0,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/posts\/27855\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/media\/27856"}],"wp:attachment":[{"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/media?parent=27855"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/categories?post=27855"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/tags?post=27855"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}