Economic Information Daily (21st) reported that Qinhuangdao Port Co. (03369) (SSE: 601326) announced it entered into a letter of intent for equity acquisition with its controlling shareholder, Hebei Port Group, yesterday, intending to issue A-shares and pay cash to purchase equity stakes in four companies engaged in port operations and related businesses, including 25% equity of Tangshan Caofeidian Industry, 24% equity of Guotou Caofeidian, 28.2328% equity of Huaneng Caofeidian, and 6% equity of Tangshan Caofeidian Coal Port. The group stated that its A-shares will be suspended from trading on the Shanghai Stock Exchange starting from the market opening today, with the suspension expected to last no more than 10 trading days. Meanwhile, H-shares listed on the Hong Kong Stock Exchange will continue trading.

    The group stated it currently holds 35% equity in Caofeidian Industry, 15% equity in Guotou Caofeidian, and 51% equity in Caofeidian Coal. Huaneng Caofeidian is held by China Huaneng Group with 51% equity, Hebei Port Group with 28.2328% equity, Caofeidian Port Group with 19.7672% equity, and Guotou Transportation Holding with 1% equity.

    The group stated that if the proposed acquisition is implemented, it may constitute a major transaction and a connected transaction, and the transaction price will be based on the valuation results stated in the valuation report issued by an asset appraisal institution, to be mutually agreed upon by both parties. The specific details of the proposed acquisition will be stipulated in a formal agreement to be separately signed by the transacting parties. (wh)