China State enters into joint venture with Cscec Strait

China State enters into joint venture with Cscec Strait

China State has entered into a joint venture with Cscec Strait Construction & Development Co., Ltd 

The JV Agreement, which the parties agreed to establishes the Fuzhou JV on an 80:20 basis to undertake the Infrastructure and engineering works relating to the construction of roads, tunnels, bridges and urban infrastructure; water conservation, environmental and public utilities; urban landscaping and greening works) in Fuzhou, Fujian Province, in the PRC with CSCDCL as a joint venture partner. The Board said that

such arrangement will bring synergy effect to the Group and is in line with the Company’s strategy of developing infrastructure investment businesses in the PRC.

Capital commitment

The aggregate investment in the Fuzhou JV shall be RMB600 million (equivalent to approximately HK$750 million). The registered capital of the Fuzhou JV shall be RMB240 million (equivalent to approximately HK$300 million). CSCIICL and CSCDCL will respectively pay RMB192 million (equivalent to approximately HK$240 million) and RMB48 million (equivalent to approximately
HK$60 million) in cash into the Fuzhou JV as its registered capital, which shall be paid by instalments within one year after the issue of business licence of the Fuzhou JV. The payment to be made by CSCIICL will be funded by the internal resources of
the Group.

 

 

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