NWS Holdings to further acquire interest in Guangzhou Dongxin Expressway
NWS Holdings Limited ("NWS Holdings" or the "Group"; Hong Kong stock code: 0659) announced that the Group to further acquire 15.3% interest in Guangzhou Dongxin Expressway at a consideration of approximately HK$134 million. NWS Holdings has held 25.5% equity interest in Guangzhou Dongxin Expressway since May 2006. Upon completion of the further acquisition of 15.3% interest in Guangzhou Dongxin Expressway, the Group will then hold 40.8% equity interest of the project. The total investment of the project amounts to approximately HK$6 billion.
Mr Chan Kam Ling, Executive Director and Chief Executive Officer of NWS Holdings, said the Group is confident of the expressway's growth potential, "The expressway srategically located at Pearl River Delta region is well-positioned to capture the ample growth opportunities of the region under the 11th Five-Year Plan. We are of the view that the expressway will generate substantial returns to the Group while at the same time further expand our infrastructure portfolio. With the robust economic growth of Mainland China, we see promising prospects of the expressway sector." The acquisition befits NWS Holdings' business strategy and is a demonstration of the Group's firm direction in investing in the core infrastructure assets.
Guangzhou Dongxin Expressway, a dual six-lane expressway (partially with eight lanes) with a length of approximately 46.22 kilometres, runs from Fangcun District to Panyu District in Guangzhou. By connecting to the Guangzhou East-South-West Ring Road and Nansha Port Expressway, the project completes the expressway network among the new Guangzhou Railway Station, the Nansha Port and the new Guangzhou Baiyun International Airport. The project is also the nearest highway to and from the future new Guangzhou Railway Station. It is expected to be in partial operation by mid-2008 and full operation at the end of 2009.