It is reported that Rizhao Port is to purchase assets through a private placement of not more than 474 million shares at CNY 4.27 per share to its parent, Rizhao Port Group, the parent wholly owned subsidiary Lanshan Port and to steelmakers which hold stakes in Yuqiao Iron Ore Handling.

The report did not reveal the identities of the steelmakers.

The parent group will subscribe to the private placement with its 70% stake in Jurong Port Terminals 84% shareholding in Ocean Shipping Tally and all its tug boat assets and business. Lanshan Port will subscribe to the private placement with its 4# and 9# berths in Lanshan Port and its tug boat assets and business.

The steelmakers which own stakes in Yuqiao Iron Ore Handling will subscribe to the private placement with their 23.81% shareholdings in Yuqiao Iron Ore Handling.

Rizhao Port said the deal will help to expand the scale of its business, enhance its product structure and industrial chain. In addition, the deal will help to standardize related-party transactions and avoid horizontal competition.

Rizhao Port recorded a 14.17% YoY rise in first quarter 2011 net profit to CNY 119 million with weighted average return on equity of 2.59% up by 0.12 percentage point YoY.

(Sourced from 163.com)