Shenzhen Centralcon Investment Holding Co (000042.SZ) plans to buy 23.2 percent of China South City Holdings Ltd (1668.HK) for HK$3.8 billion ($490 million) to become its biggest shareholder, China South City said.
The Shenzhen-listed real estate group will buy the shares from co-chairman Cheng Chung Hing at HK$2.05 per share, a 25 percent premium over its Wednesday closing price.
Shares in Hong Kong-listed China South City surged 9.2 percent to HK$1.79 in early trade on Thursday.
China South City said the two firms would become more competitive by leveraging their respective strengths in residential development, logistics, and trade centers.
Source: Reuters.com