HK's Swire Properties to pay $1.34 bln for stakes in two Chinese companies (updated)

Swire Properties

04/09/2023 13:00

(Updates with details and background in paragraphs 3-6)
       Sept 4 (Reuters) - Hong Kong's Swire Properties
 1972.HK  said on Monday it has submitted bids to acquire equity
interests worth 9.71 billion yuan ($1.34 billion) in two limited
liability companies incorporated in China. 
    Elegant Ocean, a Swire Properties unit, bid for a 40% stake
in Shanghai Dongmao Real Estate, while United Hill, another
subsidiary, is set to acquire a similar stake in Shanghai
Yaolong Investment.
        Shanghai Lujiazui Finance & Trade Zone Development
 600663.SS , a real-estate firm that was initially holding talks
to acquire the stakes, will hold a shareholders meeting to not
go ahead with the transaction, the company said. 
        Hong Kong-headquartered Swire Properties signalled
towards a potential bidding war if Shanghai Lujiazui
shareholders did not waive its right to acquire the stakes. 
  
        "Lujiazui Development will compete with Elegant Ocean
and/or United Hill for the stakes," Swire Properties said in a
statement.
  
        If the deal goes through, Swire Properties will emerge
as the owner of certain plots around the Pudong New Area in
Shanghai, it said. 
  
        
    
 
 ($1 = 7.2700 Chinese yuan renminbi)

 (Reporting by Rishav Chatterjee in Bengaluru; Editing by Savio
D'Souza and Sohini Goswami)
 ((Rishav.Chatterjee@thomsonreuters.com;))