Shanghai: Lianyungang Port announced that it has signed a supplement agreement with Jiangsu Jinguan Investment Development Group on a joint venture deal.
The two companies signed an agreement to set up a joint venture, Jiangsu Guanhe International Port Company in 2011. Under the agreement, Lianyungang Port will invest RMB30m to get 60% of the equity and Jiangsu Jinguan will invest RMB20m and provide using rights for 711.5mu of land to get 40% of the equity.
However, Jiangsu Jinguan has only invested RMB13.77m and is unable to pay the rest. After a negotiation with Jiangsu Jinguan, Lianyungang Port decided to invest the remaining RMB6.23m for Jiangsu Jinguan, whose equity in the joint venture will be reduced to 27.54% after the transaction. [31/10/13]