NWS Holdings increases shares in China United International Rail Containers Co., Limited
NWS Holdings Limited ( "NWS Holdings" or the "Group"; Hong Kong stock code: 659) entered into the Share Transfer Agreement in respect of the acquisition of 8% equity interest in China United International Rail Containers Co., Limited ("CUIRC"), the sino-foreign joint venture enterprise which develops, operates and manages 18 strategically located pivotal rail container terminals in Mainland China. Upon completion, the Group will increase its interest holding from 22% to an aggregate of 30% in CUIRC and remains as the second largest shareholder of CUIRC.
The acquisition of additional interest holding was made at the cost of RMB308 million (equivalent to approximately HK$350 million).
Mr Tsang Yam Pui, Vice Chairman of CUIRC and Executive Director of NWS Holdings, expressed that it was in the best interests of the Group to increase its shareholding in CUIRC, "The acquisition of an additional equity interest in CUIRC can capitalize on the PRC Government's current focus on the development of rail transportation in China. The 18 rail container terminals network can serve to meet China's increasing demand for logistics services, particularly after the recovery of the global financial crisis." Encouraging results achieved by CUIRC since its establishment in 2007 have also strengthened the Group's positive outlook of CUIRC.
"The acquisition also shows the determination of NWS Holdings in enhancing shareholders" value by refocusing our resources on core infrastructure businesses", Mr Tsang said.
Terminals in Kunming and Chongqing have already commenced operations since 2008 and 2009 respectively while Chengdu and Zhengzhou terminals also started operational in early 2010. Kunming Terminal with ancillary facilities such as container depot and warehouses in operations handled 185,000 TEUs in 2009. Its target throughput is set at 280,000 TEUs for 2010 which represents a 50% growth year-on-year. Chongqing Terminal which commenced operations in December 2009 has started with throughput volume exceeding expectation and targets for 140,000 TEUs in 2010. Construction of terminals in Dalian, Qingdao, Wuhan and Xian is expected to be completed in 2010. All 18 rail container terminals are planned to be completed by end of 2012.
This press release is also available at the Group's website (www.nws.com.hk).
NWS Holdings Limited
NWS Holdings Limited ("NWS Holdings", Hong Kong stock code: 659), the infrastructure and service flagship of New World Development Company Limited (Hong Kong stock code: 17), embraces a diversified range of businesses in Hong Kong, Mainland China and Macau. Its Infrastructure portfolio includes Roads, Energy, Water and Ports & Logistics projects. Its Services division comprises Facilities Management (the management of Hong Kong Convention and Exhibition Centre and Free Duty), Contracting & Transport (Hip Hing Construction, NWS Engineering, and bus and ferry services) and Financial Services (New World Insurance).
For further information, please contact:
NWS Holdings Limited
Maria Cheung
Assistant General Manager - Corporate Communication
Tel : (852) 2131 6251
Pager : (852) 7302 3499
E-mail: mariacheung@nws.com.hk
Attachment: 18 pivotal rail container terminals in 18 major cities in Mainland China
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