Ningbo Construction Surges On Takeover Of Construction Company


Ningbo Construction (601789), a company involved in the construction and engineering sectors, plans to acquire a 99.96 percent stake in construction company Ningbo Municipal Engineering Group through a cash payment of 80.70 million yuan and the issue of 61.48 million shares to 10 shareholders of the latter at not less than 6.82 yuan per share, raising 419.30 million yuan, reports China Securities Journal, citing a company filing.
In addition, Ningbo Construction will issue up to 27.21 million shares in order to raise a maximum of 167 million yuan to boost the target company's registered capital and develop its main business.
The value of the assets to be acquired was assessed to be worth 500 million yuan.
According to Ningbo Construction, the book value of the company's net assets was 260 million yuan at the end of last year.
The main assets of the company include tangible assets such as fixed assets, working capital, and intangible assets such as its service network, capabilities, experienced management and employees, and brand value, said Ningbo Construction.
Ningbo Construction attributes the high valuation of Ningbo Municipal Engineering Group to the synergies that will result from the acquisition, which will greatly increase the value of its assets.
Ningbo Municipal Engineering Group committed to record 2012-2014 net profits that will be higher than that forecast by rating agencies.
Shares of Ningbo Construction rose by its daily limit of 10.02 percent in morning trading.


2005-2011 All Rights Reserved 京ICP备05069564号-1