China Railway Group (0039) will create a joint venture with YDAB and the shareholders of Yunnan Group.
The state-owned company will increase the 27.28 billion yuan (30 billion Hong Kong dollars) registered capital of the joint venture by injecting its stake in its direct subsidiary Dianzhong Water Diversion, and the company’s 100% stake in its 100% China Railway subsidiary. Investment Group, in the joint venture.
The company will subscribe a registered capital of 70,510 yuan in cash.
The joint venture will become a direct subsidiary of the company upon its establishment, with CRDI and Dianzhong Water Diversion as direct subsidiaries of the company.
Its shares will be 70.51% owned by the company; 12.56% by the State-owned Assets Supervision Management Committee of Yunnan People’s Government; 16.28% by Yunnan Industrial; and 0.65% by Yunnan Investment.
The joint venture will build an investment and construction platform centered on southwest China and expand to South Asia, Southeast Asia, the Indian Ocean Rim and to other regional markets.