Shanghai Industrial buys controlling stake in Neo-China

State-owned Shanghai Industrial bails out beleaguered property company Neo-China with a $353 million cheque and prepares to make a general offer to minority shareholders.

Chinese state-owned enterprise Shanghai Industrial Holdings is investing HK$2.746 billion $353 million for a 45% stake in Neo-China Land group, making it the controlling shareholder of the Hong Kong-listed company, which has been suspended from trading for two years.

Shanghai Industrial is acquiring 500 million existing Neo-China shares, representing 19% of the enlarged share capital, from controlling shareholder, Li Song Xiao, and subscribing to 684 million new shares that make up another 26%. Shanghai Industrial will pay HK$2.32...

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