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2009-3-17 08:21:00 a.m. HKT, XFNA
DJ MARKET TALK:Funding Concerns Set To Cap Any Tianjin Port Gains
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| 0801 [Dow Jones] Tianjin Port Development's (3382.HK) consolidation of port assets with sister firm Tianjin Port Holdings (600717.SH) likely taken as strategically positive, but massive dilution from new shares sale, deteriorating trade statistics likely to keep lid on gains when stock resumes trade today. HK$10.96 billion deal will widen TPD's portfolio to include all commercially run port assets within Port of Tianjin, one of biggest ports in Bohai Rim; TPD will sell HK$7.03 billion worth of shares (more than TPD's market cap of HK$4.02 billion) at HK$2.09 each (7% discount to pre-suspension price HK$2.25) each to state-owned Tianjin Port Group, which will then replace Tianjin Development (0882.HK) as TPD's biggest shareholder with 51% stake; HK$3.93 billion balance will settled by cash, which will be financed with internal resources, bank borrowings, likely share placement or issue of convertible securities, which adds another uncertainty. HK$2.25 already stock's year-to-date high, may not be too much upside; psychological HK$2.50 unlikely troubled.(RLI) Contact us in Hong Kong. 852 2802 7002; MarketTalk@dowjones.com
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(Delayed by 1 hour)
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