Dec. 17 (Bloomberg) -- Cosco International Holdings Ltd., an investor in real estate and shipping services, said it will raise a net HK$5.23 billion ($673 million) selling shares in Beijing-based developer Sino-Ocean Land Holdings Ltd.
The shares are priced at HK$5.60 each, compared with Sino-Ocean Land’s closing price of HK$5.08 yesterday, Cosco said in a Hong Kong stock exchange filing late yesterday. Cosco announced the share-sale plan in a Sept. 10 statement, and its shareholders approved the disposal that month.
China’s property prices rose at the slowest pace in a year in November. The government has in 2010 suspended mortgages for third-home purchases, pledged to speed up trials of property taxes and raised the reserve-ratio requirement for banks to limit the risk of asset bubbles.
Cosco will shed more real-estate investments as it focuses on providing shipping services, Managing Director Wang Xiaodong said in March. The stock gained 3.4 percent to HK$4.85 as of 10:28 a.m. in Hong Kong.
Sino-Ocean Land, which is developing more than 20 projects in China’s capital, rose as much as 9.1 percent in Hong Kong today, heading for its biggest gain since May 24. The shares recently traded 6.1 percent higher at HK$5.39. The stock has dropped 25 percent this year, compared with a 3.7 percent gain in Hong Kong’s Hang Seng Property Index.
BOC International Holdings Ltd. and UBS AG are arranging the sale of 949.9 million Sino-Ocean shares, Cosco said.
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