HONG KONG, Dec 29 (Reuters) - An infrastructure unit of Hong Kong’s family-run Hopewell Holdings Ltd is to sell its majority stake to the Shenzhen municipal government’s flagship investment firm for HK$9.87 billion ($1.26 billion), the company said on Friday.
Shenzhen Investment International Capital Holdings Infrastructure Co. Ltd is to acquire 66.7 percent of Hopewell Highway Infrastructure Limited, the three companies said in a joint statement.
Upon completion, Hopewell Holdings expects to realise a net gain of about HK$4.92 million.
“The HHL Directors note that SIHC is the flagship investment platform of the Shenzhen Municipal Government and the acquisition of the sale shares will ... be a significant contributor to SIHC’s continuous expansion of the connections within the Guangdong-Hong Kong-Macau Bay Area,” the statement said.
The “Greater Bay Area,” a national strategy, aims to bring together Hong Kong, Macau and nine cities in southern China to form a business powerhouse that rivals other metropolitan megacity hubs.
Hopewell Holdings says it may re-deploy a substantial part of the proceeds to explore new investment opportunities in the Greater Bay Area.
The HHI Group focuses on highway infrastructure businesses in mainland China, and currently operates the Guangzhou-Shenzhen Superhighway and Western Delta Route, the statement said. ($1 = 7.8136 Hong Kong dollars) (Reporting by Venus Wu, editing by David Evans)