BEIJING (AFX) - Ports-to-telecom conglomerate Hutchison Whampoa is expected to buy an unspecified stake in subway operator Shanghai Shentong Group Co Ltd, parent of the listed Shanghai Shentong Metro Co Ltd (SHA 600834), the Economic Observer reported.
The paper cited unidentified sources as saying that the deal is likely to be completed by the end of this month.
Shentong Group built and operates four subways and light rail lines in Shanghai with a total length of 95 km, and a 33-km high speed maglev line to the airport.
The report said the Shanghai municipal government has approved the transaction as a key project in restructuring the city's state-owned assets.
According to Shanghai's urban construction plan, Shentong Group will invest 160 bln yuan to build another 13 rail-transit lines with a total length of 500 km, the report added.
Citing unidentified analysts, the report said that the Shanghai government is likely to seek strategic investors and other investments to finance the construction of the city's extensive urban rail network.
Earlier in February this year, Hong Kong's MTR Corp signed a concession agreement with the Beijing municipal government to invest in, construct and manage the 29-km Beijing Metro Line Four.
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The paper cited unidentified sources as saying that the deal is likely to be completed by the end of this month.
Shentong Group built and operates four subways and light rail lines in Shanghai with a total length of 95 km, and a 33-km high speed maglev line to the airport.
The report said the Shanghai municipal government has approved the transaction as a key project in restructuring the city's state-owned assets.
According to Shanghai's urban construction plan, Shentong Group will invest 160 bln yuan to build another 13 rail-transit lines with a total length of 500 km, the report added.
Citing unidentified analysts, the report said that the Shanghai government is likely to seek strategic investors and other investments to finance the construction of the city's extensive urban rail network.
Earlier in February this year, Hong Kong's MTR Corp signed a concession agreement with the Beijing municipal government to invest in, construct and manage the 29-km Beijing Metro Line Four.
(1 usd = 8.3 yuan)
derek.jiang@xinhuafinance.com
dj/dg/dk
For more information and to contact AFX: www.afxnews.com and www.afxpress.com
© 2005 AFX News
