By Lin Guan (chinadaily.com.cn)
Updated: 2007-11-05 14:46

PYI Corporation Limited, the bulk cargo port and infrastructure group, announced it will pursue a 12.32 percent equity currently held by SDIC Communications Co in Nantong Port Group Limited at a maximum price of one billion yuan (US$134.13 million), Caijing Magazine reported.

The acquisition will raise PYI holdings to of 57.32 percent, and Nantong Port Group will become a PYI subsidiary. PYI has purchased 45 percent of Nantong shares over the last two years with 430 million yuan.

As Nantong Port Group share prices soar, its equity is now eight times its value two years ago. Despite the surging expenses, purchases held by PYI have appreciate by 2.5-fold, ensuring PYI’s dominance in the port group.

Currently, the equity interest of Nantong Port Group is owned 45 percent by PYI, 42.68 percent by Nantong State-owned Assets Investment Holdings Limited and 12.32 percent by SDIC Communications, a wholly-owned subsidiary of State Development and Investment Corp.

For the financial year ended December 31, 2006, after-tax profit at Nanftong Port Group is 52.4 million yuan.

The Chinese government lifted the ban prohibiting overseas companies' holding position in public ports in 2002 and after that, overseas funds have acquired some public ports. However, existing ports being taken over is still a rarity.