HONG KONG-Cofco, a massive state-owned Chinese company plans to sell a portfolio of 12 commercial properties owned by an affiliate in what is being described as a reverse buyout.
It is expected that the transactions, valued at $1.8 billion (14.2B HK), will create a larger company and a broader pool of investors.
Bloomberg reports that Hong Kong Parkview Group Ltd., which is a majority-owned unit of Cofco, will buy stakes in companies that hold assets in Chinese cities including Beijing and Chengdu. The company indicated earlier this week in a filing that it will sell as many as 2.3 billion shares to investors to raise funds for the purchase.
Developers in China are looking for ways to get financing at lower rates as the government has restricted access to capital.
The New York Times says the 12 properties are in cities across China and they include hotels, offices, apartments and shopping malls.
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