China's Zhongsheng to buy Mercedes distributor for $1.3 bln, shares at record high

Zhongsheng group

02/07/2021 06:12

** Shares of automobile distributor Zhongsheng Group
Holdings Ltd  0881.HK  rise 9.4% to HK$70.70, the highest since
their debut in March 2010
    ** Stock rises most since March 24, 2020; among the 30  
biggest percentage gainers on the Hong Kong bourse
    ** The Liaoning-based co agreed to buy Zung Fu (China) Ltd,
one of the largest dealership networks of Mercedes-Benz in
Southern and Western China, from a unit of Jardine Matheson
 JARD.SI  for $1.3 bln as it expands its business in the luxury
passenger vehicle market  urn:newsml:reuters.com:*:nFWN2OD0K2
    ** Says the deal will be settled $900 mln in cash and the
rest by issue of 48.98 mln new shares, or 2.07% of the enlarged
share capital, at HK$63.3964 apiece 
    ** Jardine Matheson says it expects its shareholding in
Zhongsheng to increase to 21.25% after the deal, solidifying its
position as the second-largest shareholder of the Hong
Kong-listed firm after Zhongsheng's founders
    ** The Hong Kong Hang Seng Commerce & Industry Index  .HSNC 
falls 2.5%, and the consumer goods and services index  .HSCGSI 
drops 2.4%
    ** The Hang Seng China Enterprises Index  .HSCE  slips 2.1%,
and the benchmark index  .HSI  eases 1.6%
    ** Stock up 16.9% this year, as of last close 

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