Hsin Chong Buys Guangdong Land for Development for $1.4 BillionMichelle Yun
Hsin Chong Construction Group Ltd., agreed to pay HK$10.6 billion ($1.4 billion) for a company with land in China’s Guangdong province that will be developed into a residential and commercial project.
Hsin Chong will buy Goleman International Ltd. from a businessman Lin Zhuo Yan, the company said in a statement today. It will pay for the acquisition with HK$3.1 billion in cash and the rest in preference shares priced at HK$1.2 each.
The Hong Kong builder is expanding from construction and civil engineering to real-estate development, having acquired two projects in China since 2011, including a commercial property in Beijing. The latest proposed acquisition in Foshan city, Guangdong, will be built to include homes, offices, hotels and shopping outlets.
Hsin Chong shares fell 1.8 percent to close at HK$1.08 yesterday before the announcement was made.
The company said it will raise at least HK$4.4 billion from equity and, or, equity-linked issues to fund the purchase. The deal is subject to approvals and conditional on the fundraising, it said.
Lin is the spouse of Pony Ma, who owns stakes in Hsin Chong, the company said.