Comprehensive M&A data with integrated detailed company information

Yuexiu boost toll mileage of controlled expressways
Posted on Friday, 13 September 2019 12:16
Yuexiu Transport Infrastructure is acquiring equity interests in companies operating three controlled-access highways in the Hubei province for a total CNY 5.76 billion (USD 82.23 million), including debt, as part of its strategy of expanding into central China. At the moment, the Hancai and Han’e Expressways are two of the seven high-speed roads radiating out of the region’s capital city and they connect Wuhan to the outlying districts, development zones and industrial parks in the Greater Wuhan circle. Yuexiu Hubei Expressway (YXHB) fully owns Han’e Expressway’s operating entity, Hubei Yue Xiu Han’e Expressway. The investment holding company also has a 28.5 per cent interest in Hancai Expressway Company Limited of Hubei Province, alongside Guangzhou Yue Xiu Enterprises (38.5 per cent) and two unnamed investors (7.0 per cent; 26.0 per cent). Incidentally, Guangzhou Yue Xiu Enterprise is the wholly-owned subsidiary of Guangzhou Yue Xiu Holdings, which is Yuexiu’s controlling shareholder with a 44.2 per cent stake. The portion of the Daguangnan Expressway targeted in this deal is fully operated by Hubei A’shennan Expressway Development (ASN) and links the provinces of Hubei and Jiangxi vertically. It forms the southern part of the high-speed road that runs from Daqing in the north and ends at Guangzhou in the south and which is one of the 11 national trunk lines flowing north to south in China’s controlled-access highways network. YXHB’s wholly-owned Wuhan Andi Technology Industry Development controls 90.0 per cent of ASN. Yuexiu is acquiring the entire capital of YXHB for CNY 633.00 million and Guangzhou Yue Xiu Enterprises’ 38.5 per cent stake in Hancai for CNY 474.00 million. It is also taking on a shareholder loan in the principal amount of CNY 4.65 billion owned to Guangzhou Yue Xiu Enterprises. On completion of the acquisitions, Yuexiu’s toll mileage of controlled expressways will increase 58.7 per cent from 337.10 km to 534.90 km. © Zephus Ltd