China Overseas Property at 11-month low after acquisition, Nomura says price elevated

China State Construction Development Holdings

12/10/2023 06:15

** Shares of property management service provider China
Overseas Property Holdings Ltd  2669.HK  drop as much as 15.7%
to HK$7.17, lowest since Nov 11, 2022, in the second session of
decline
    ** Stock marks biggest one-day pct drop since debut in
October 2015, if losses hold; biggest pct loser in index on
properties and construction stocks  .HSCIPC  and in Hang Seng
Composite Index  .HSCI  
    ** Co plans to buy Project Supervision Ltd from China State
Construction International  3311.HK  and China State
Construction Development Holdings  0830.HK  for up to HK$950 mln
($121.49 mln) as it expands property consultation and management
services in China 
    ** Says the deal will be settled by internal resources and
available banking facilities
    ** Nomura says the acquisition "brings uncertainty" as China
Overseas Property buys the business from sister companies at an
"elevated price"   

($1 = 7.8197 Hong Kong dollars)

 (Reporting by Donny Kwok)
 ((donny.kwok@thomsonreuters.com))