JIANGSU EXPRESSWAY (00177.HK): Acquires 100% of Sunan Expressway for RMB7.345bn

NewTimeSpace News: On 27 October 2026, Jiangsu Expressway Company Limited (stock code: 00177) provided an update on its cash acquisition of 100% of Jiangsu Suxichang South Expressway Co., Ltd.: based on the filed asset valuation, the Company and the transferors signed a supplemental equity transfer agreement on 26 October 2026 to finalise the consideration, each transferor's payment and the profit commitment.

The filed valuation report, with a valuation date of 31 December 2025, values the target's total equity at RMB7,345.41 million under the income approach, about 0.0542% above the previous estimate of RMB7,341.43 million. Accordingly, the consideration for the 65% held by Jiangsu Communications, the 22.82% held by Wuxi Communications and the 12.18% held by Changzhou Communications has been fixed at RMB4,774.5165 million, RMB1,676.1350 million and RMB894.7585 million respectively, totalling RMB7,345.41 million.

Jiangsu Communications' consideration will be paid in two instalments: 50% (RMB2,387.25825 million) within five business days after completion of the 65% transfer and satisfaction of the payment conditions, and the remaining 50% by 29 September 2027 with interest at the one-year loan prime rate. The consideration for Wuxi Communications and Changzhou Communications will be paid in a lump sum within five business days after their respective transfers and conditions are satisfied. The cumulative committed net profit for 2026 to 2028 is not less than RMB592.571 million, below the earlier estimate of RMB611.0783 million.

The Company said the adjustments do not constitute a material change to the transaction, with the purpose, target, payment principles and profit commitment principles unchanged, and will not adversely affect its financial position or operating results.