(26 April 2022, Hong Kong) NWS Holdings Limited (“NWS” or the “Group”, HK Stock code: 659) today announced the acquisition of 40% interest in Guigang-Wuzhou Expressway (“Guiwu Expressway”) from Logan Transport Group Co., Ltd, for a total consideration of approximately RMB1.9 billion (approximately HK$2.3 billion). It is expected that the Expressway will bring an immediate contribution to the cash flow and financial performance of the Group upon completion of the acquisition, thereby fuelling the growth momentum and supporting the Group’s sustainable and progressive dividend policy.
Guiwu Expressway is located in Guangxi, connecting Guigang and Wuzhou, with a total length of approximately 198 km and a concession expiry in 2045. As of 31 December 2021, the net profit after income tax was RMB171.2 million.
Upon completion of the acquisition, the Group’s roads portfolio will cover approximately 1,000 km in length. This will further strengthen the Group’s business portfolio in the Roads segment and also increase the average remaining concession period of the roads portfolio, enabling the long-term sustainable growth of the Group.
Eric Ma, CEO of NWS said, “The Group is confident about the prospects in the Mainland and Hong Kong. The Expressway is located at a strategic location that functions as a transportation hub for Southwestern region, connecting Guangdong, Yunnan, Guizhou, Beibu Bay, and the ASEAN markets. It is anticipated that the Expressway will benefit from a number of favourable national policy initiatives, including the Greater Bay Area Initiative, the One Belt One Road Initiative, the ASEAN Economic Ring, and the Beibu Bay Economic Zone. The acquisition enables the Group to further integrate into the National Development.”
Gilbert Ho, COO of NWS said, “The acquisition aligns with our investment strategy. We have been capturing lucrative investment opportunities that generate strong returns and solid cash flow, with the aim of strengthening our existing businesses. The Group is committed to enhancing the quality of our business portfolio in order to achieve long-term sustainable growth and maintain our sustainable and progressive dividend policy”
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