| To : Business Editor | For immediate release |
12th December 1997 -- Hongkong Land Holdings Limited today announced that a wholly owned subsidiary has subscribed US$40 million to purchase shares in Central China Power Corporation Limited, a private company developing power plants in China.
Central China Power owns controlling interests in nine power projects under construction and development in the Henan and Shandong provinces of China. The power plants will have a total installed capacity of 550 MW, and will supply power and heat to major industrial and municipal users. The life spans of typical projects are 20 years.
The initial shareholding of Hongkong Land will be approximately 28%, but this is expected to be diluted slightly by further subscriptions from new shareholders before 31st March 1998. The subscription was funded from existing cash resources. As part of the same private placement of shares, Nomura/Jafco Investment (Asia) Limited, a Nomura Securities Group company, has also subscribed US$10 million.
Announcing the investment, Hongkong Land Executive Director, Duncan Straughen said, "Central China Power presents an attractive opportunity for the Group to become involved in the power industry in China. The founding shareholders and management have built a well balanced portfolio of projects which will begin to come on stream next year."
"We believe the company's strategy of pursuing a range of smaller scale projects with strong local off-takers will provide a good framework for continued growth," he added.
The Hongkong Land Group owns and manages some 5 million square feet of prime office and retail space in the heart of Hong Kong's Central business district. The Group is also building a portfolio of property and infrastructure projects in Asia and is active in the Philippines, Singapore, Vietnam and Indonesia in addition to China and the Hong Kong Special Administrative Region.
For further information, please contact:
| Hongkong Land Duncan Straughen |
Tel: (852) 2842 8352 (office) |
| Ludgate Asia Limited Martin Spurrier |
Tel: (852) 2543 5413 (office) |
This announcement can be accessed through the Internet at "http://www.irasia.com/listco/sg/hkland" and is also available through "First Call".
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