May. 28, 2012 (China Knowledge) - Enerchina Holdings Ltd<0622
>, a clean energy and public utility developer, has announced plans to acquire hotel assets in Shanghai
and a controlling stake in a plot of land in Zheijing Province for a combined HK$2.55 billion or US$328.5 million, to set foot in mainland China's real estate market.
In a statement filed with the Hong Kong Stock Exchange
, the company said it will buy the target assets from property developer Wu Laam Anne, in exchange for HK$1.35 billion in cash, RMB 1.04 billion worth of five-year convertible notes with no interests and 1.6 billion new shares that will account for 18.2% of the enlarge share capital.
Wu would eventually hold a 62.5% stake in enlarged EnerChina shares, said a person familiar with the matter.
Upon the completion of the acquisition, EnerChina will indirectly have entire equities of the Hilton Hotel in Jing'an District, Shanghai
. The hotel has 40 floors and 800 guest rooms.
A 90% stake in a plot, located in Ningbo
Province, will also be acquired by EnerChina and will be built as a tourism property project with a gross floor area of around 1 million square meters.