Shenzhen Expressway Company Limited

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In March 1997, shares in the Shenzhen Expressway Company Limited were issued on the Hong Kong Stock Exchange. These H shares transferred 33.9% of the company into private hands. The company's primary activities are the development, operation, and management of highways in China. Upon privatization, the company had a 30-year concession for the operation of 4 highways - National Highway No.107 (Shenzhen Section) (100%), National Highway No.205 (Shenzhen Section) (100%), Meiguan Expressway (55%), and Jihe Expressway (East) (55%). The company used proceeds of the offering to finance construction of the western section of Jihe Expressway. The company has a right of first refusal for all future expressways in Shenzhen and a protection against competing roads. The company issued 650,000,000 shares with a nominal value of HK$2.20 per share - an approximate divestiture revenue of US$150 million. In December 2001, the company issued 165,000,000 A-shares at a price of RMB 3.66 per share (USD72.9m). The proceeds raised from the issuance will be used to partly fund the construction of sections B and C of the Yanba Expressway, section A began operations in April 2001. The company also had an interest in Changsha Shenchang Expressway Company Limited in Hunan via a long-term loan. None None