Jiangsu Expressway (HKG:0177, SHA:600377) plans to acquire the entire equity interest in Jiangsu Suxichang South Expressway for 7.34 billion yuan in cash, according to a Friday Hong Kong bourse filing.
The company will acquire a 65% stake from the controlling shareholder, Jiangsu Communications, for 4.77 billion yuan.
It will also acquire a 22.8% stake from Wuxi Transportation Industry for 1.68 billion yuan, and the remaining from Changzhou Communications for 894.3 million yuan.
The acquisition aims to expand Jiangsu Expressway's asset base in southern Jiangsu, improve its asset portfolio, and strengthen its core toll-road business.
The transaction will be financed using the company's own funds.
Suxichang South Expressway Company operates the roughly 43.9-kilometer Suxichang South Expressway, which includes the Taihu Tunnel, described in the filing as China's longest and widest underwater tunnel.