Chengdu Expressway Declines Airport Expressway Acquisition as Parent Proceeds, Triggering Connected Transactions

An update from Chengdu Expressway Co., Ltd. Class H ( (HK:1785) ) is now available.

Chengdu Expressway Co., Ltd. announced that, under its existing non-competition agreement with controlling shareholders Chengdu Communications Investment and Chengdu Communications Investment Transportation Construction and Management Group Co., Ltd., it has opted not to participate in the acquisition of 100% equity in Sichuan Tianfu Airport Expressway Co., Ltd., citing the project’s long loss-making period, significant financial impact, and the risk of higher leverage that could undermine the company’s financial stability and shareholder interests. Following the decision, the controlling shareholder Construction and Management Group proceeded as sole transferee to acquire Tianfu Airport Expressway from China Railway Group Limited and China Railway Construction Corporation Limited, making Tianfu Airport Expressway its wholly owned subsidiary and thus a connected person of Chengdu Expressway, which in turn transforms the existing expressway operation service contracts related to Tianfu Airport and the Pujiang–Dujiangyan section into continuing connected transactions requiring ongoing compliance with Hong Kong Listing Rules.

The most recent analyst rating on (HK:1785) stock is a Buy with a HK$2.50 price target. To see the full list of analyst forecasts on Chengdu Expressway Co., Ltd. Class H stock, see the HK:1785 Stock Forecast page.

More about Chengdu Expressway Co., Ltd. Class H

Chengdu Expressway Co., Ltd. is a Hong Kong-listed expressway operator based in the People’s Republic of China, primarily engaged in the investment, construction, operation and management of toll roads and expressways serving the Chengdu region and surrounding economic zones.

Average Trading Volume: 1,315,514

Technical Sentiment Signal: Buy

Current Market Cap: HK$3.44B

See more data about 1785 stock on TipRanks’ Stock Analysis page.