Shanghai State Investment Commission approves 1.7 billion project

NetEase Finance April 19 News of Shanghai Construction Project announced today, Shanghai Sasac has agreed to the principle of the company's holding shareholder Shanghai Construction (Group) corporation held by Shanghai Foreign Economic Group Holdings Limited 100% stake and Shanghai Municipal Engineering Design Research Institute (Group) Co., Ltd. 100%　　Shares subscribe to the company's non-public distribution of about 114 million shares of the renminbi plan.　　The plan shows that the company intends to add about 114 million shares to 15.05 yuan/unit Upward Sea construction group to buy the latter holding Shanghai foreign Economic Group Holdings Limited, Shanghai Municipal Engineering Design Research Institute 100% Equity, the price of the above mentioned assets is 1.719 billion yuan.　　Data show that in 1998, the construction industry group will be one of the civil engineering integration of Shanghai building and listing, but limited by the scale of the capital market at that time and the construction group's own historical burden and other reasons, and the main architectural works related to some professional business and other not listed. In May 2010, the construction group has injected the core assets and business of the professional constructions into Shanghai building.　　For the holding shareholder to inject assets again, the company said that in view of the Shanghai Sasac in 2009, China's Shanghai Foreign Economic (Group) Co., Ltd. was transferred to the construction group, the construction group needs to spend some time on its overseas business clean-up, integration, so the overseas business has not been injected into Shanghai construction.　　Accordingly, Shanghai construction in the "issue shares purchase assets and major assets reorganization (related transactions) report" disclosed that, construction group undertakes to plan to complete the integration of assets and business of China Shanghai Foreign Economic (Group) Co., Ltd. in two years ' time, and inject the overseas business of construction group into Shanghai construction. September 2010, in order to further enhance the engineering design function of construction group, to upgrade the general contracting and total integration ability of construction group, Shanghai Sasac transferred the shareholding of Shanghai Municipal Engineering Design Research Institute (predecessor of Municipal Hospital) to construction group.　　Municipal College is the largest and most powerful enterprise in the municipal design industry in China, and it has a division and cooperation relationship with Shanghai Construction in many major municipal projects.　　The announcement revealed that the net profit of the municipal institutions in 2009 and 2010 was 127 million yuan and 138 million yuan respectively.　　Shanghai Construction said that after the completion of the transaction, construction group control of the management of high-quality assets will be fully injected into Shanghai construction, will effectively resolve the previous major asset restructuring legacy of the construction group and Shanghai Construction Overseas Business competition issues, reduce related transactions, to achieve the overall listing.　　Guotai's latest research report said that after the reorganization of Shanghai Construction Company's assets, the asset scale, asset quality and profitability of the listed companies will be further enhanced and the competitive strength further enhanced. The research report points out that by injecting assets, the value chain of Shanghai construction will be extended both horizontally and vertically. Municipal institutions have the industry-leading scientific and technological research and development strength, in the water supply and drainage, magnetic levitation, Cross River (sea) bridges and other municipal design areas with the core competitive advantage, and has reached the international leading level. It can undertake engineering design in 21 industries.Municipal institutions currently have branches in 12 cities nationwide, in 30 provinces and cities have design, consulting business, Shanghai outside the area of business accounted for 50%. Shanghai outside the company to undertake the group's high-quality core operating assets and construction of overseas business holding companies. Overseas business has more than 50 over the shoulder to build the Hundred project.　　Guotai give Shanghai Construction "overweight" rating, the target price of 26 yuan. 19th, Shanghai construction of the 17.77 yuan. Responsible Editor: NF058