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Zhejiang Expressway to absorb Zhejiang Oceanking, valuing it at $900 million

Zhejiang Expressway, listed in Hong Kong, announced on Tuesday that it would absorb Zhejiang Oceanking Development through a share exchange deal. The firm will be valued at approximately 6.44 billion Yuan ($900.33 millions).

Shareholders of Zhejiang Oceanking will receive 1,08 Zhejiang Expressway share for every Oceanking share they hold.

Zhejiang Expressway issuing A-shares for 13.50 Yuan each, translating to a 14.58 Yuan conversion price per share of Oceanking.

Oceanking's conversion price represents a discount in the region of 4.6% on its last closing date, August 19. The trading of shares in the company was halted due to an asset restructuring that could be major. It hasn't resumed since.

Both firms are controlled by the state-owned Zhejiang Communications Investment Group. Its holds 67.69% in Zhejiang Expressway, and 54.72% in Zhejiang Oceanking Development.

In its statement, Zhejiang Expressway said that "Oceanking Development will delist and deregister as a legal person upon completion of the merger."

Oceanking Development specializes in research, development, production and sales of products related to chloralkali. ($1 = 7.1529 Chinese yuan renminbi) (Reporting by Shivangi Lahiri in Bengaluru; Editing by Shailesh Kuber)

(source: Reuters)