BANK of China is to acquire a stake in the company building the Beijing - Shanghai high-speed line in a deal worth Yuan 6 billion ($US 879 million), which was signed on Tuesday. Subject to regulatory approval, the bank will acquire 4.54% of Beijing-Shanghai High-Speed Railway Company from its biggest shareholder, China Railway Construction Investment Company, which is owned by the Ministry of Railways.
BANK of China is to acquire a stake in the company building the Beijing - Shanghai high-speed line in a deal worth Yuan 6 billion ($US 879 million), which was signed on Tuesday. Subject to regulatory approval, the bank will acquire 4.54% of Beijing-Shanghai High-Speed Railway Company from its biggest shareholder, China Railway Construction Investment Company, which is owned by the Ministry of Railways.
The deal will allow Bank of China to appoint a director to the board of
the company, which is also reportedly planning a stock market listing
this year to generate additional funds for the Yuan 220.9 billion
project.
Construction began on the 1318km line in April 2008 and
it is expected to open next year, reducing the journey time between the
two cities from 10 hours to just four.
