Zhejiang Expressway to absorb Zhejiang Oceanking, valuing it at $900 million (updated)

Zhejiang Expressway Co

02/09/2025 16:53

Adds further details in paragraphs 3-6

Sept 2 (Reuters) - Hong Kong-listed Zhejiang Expressway 0576.HK said on Tuesday it will absorb Zhejiang Oceanking Development 603213.SS by way of a share swap deal, valuing the firm at around 6.44 billion yuan ($900.33 million).

Under the arrangement, shareholders of Zhejiang Oceanking Development will receive 1.08 Zhejiang Expressway shares for each Oceanking share held.

Zhejiang Expressway will issue A-shares at a price of 13.50 yuan apiece, which translates to a conversion price of 14.58 yuan apiece for shares of Oceanking.

        The conversion price for Oceanking represents a discount of around 4.6% from its last close on August 19. Trading in shares of the firm were halted on the day, due to a potential major asset restructuring, and has not resumed yet.

        State-owned Zhejiang Communications Investment Group is the controlling shareholder of both the firms. Its owns 67.69% of Zhejiang Expressway and 54.72% of Zhejiang Oceanking Development.

        "Upon completion of the merger, Oceanking Development will be delisted and deregistered as a legal entity," Zhejiang Expressway added in its statement.

Oceanking Development is primarily engaged in the research and development, production, and sales of chloralkali-related products.

($1 = 7.1529 Chinese yuan renminbi)

 (Reporting by Shivangi Lahiri in Bengaluru; Editing by Shailesh Kuber)

 ((Shivangi.Lahiri@thomsonreuters.com;))