(Oct 30): A major stake in railway infrastructure engineering firm Sapphire Corp is being acquired by China’s HNA Holding Group Co, which could open doors for the company to win more contracts amid a boom in infrastructure development spending in emerging markets.
On Oct 18, Sapphire said HNA’s subsidiary Hong Kong International Construction Investment Management Group would issue more than 40.5 million new shares at HK$4.08 each in exchange for more than 56.5 million shares in Sapphire held by an entity called Ou Rui, which is controlled by an individual named Li Xiaobo. HKICIM will also issue nearly 24.9 million new shares at the same price in exchange for nearly 34.7 million shares in Sapphire held by an entity called Best Feast.
These transactions will give HKICIM an approximate 27.97% stake in Sapphire. Ou Rui will no longer own shares in Sapphire but will hold a stake of 1.17% in the enlarged HKICIM. Best Feast will still own 17.33% of Sapphire, down from 27.96% previously. Best Feast will also own a stake of 0.72% in the enlarged HKICIM.