Hong Kong-listed China Merchants Port is relieving another business unit of parent China Merchants Group of its 50% stake in the Port of Newcastle in Australia.
CMPort is paying $479.4m for the facility where the other 50% of the business is by The Infrastructure Fund of Australia.
In a note issued through the Hong Kong Stock Exchange CMPort said its acquisition of a stake in the world’s busiest coal port was in line with its aim to grow the business in to Oceania.
The deal also brings opportunities for the company to further achieve its “Port and Park” development under the Port-Park-City model, which aims to operate its core business together with the park development and infrastructure support for a port-centred ecosystem with port operations at its core.
CMPort has also announced an attempt to raise Rmb500m ($79.9m) through so-called One Belt, One Road bonds on the mainland.
The 5.15% coupon three-year bonds are said to be the first such instruments to be issued by CMPort.