Guangzhou Investment to streamline operations to focus on property biz

Singapore-listed Guangzhou Investment (GZI) said it is proposing to streamline its operations in order to focus on the property business.

The streamlining will involve the separation of its non-property related business and a change of its company name to Yuexiu Property Company.

Following the completion of the reorganisation, Yuexiu will focus solely on the property business.

The other assets currently held by GZI will then focus on the transport business under a unit called GZT.

GZI said the re-organisation will enable it to more effectively capitalize on the robust growth of the domestic property sector in China.

As part of the reorganisation, GZI’s board declared a special dividend of some US$642 million or about S$115 million by way of a distribution in specie of GZT Shares.

Qualifying shareholders will get 60 GZT Shares for every 2,000 GZI shares held. Alternatively, they can opt for cash of HK$180 or about S$32.30 for every 2,000 GZI shares.

Source : Channel NewsAsia – 21 Oct 2009

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