Guangdong Expressway A (000429.SZ) plans to acquire highway assets for 1,437 billion yuan to strengthen, improve and expand the main business

According to Zhitong Finance App, Guangdong Expressway A (000429.SZ) issued an announcement. The board of directors of the company deliberated and passed the “Proposal on the Acquisition of 25% of the shares of Guangzhu Section Co., Ltd. of the Beijing-Zhuhai Expressway and 25% of the shares of Zhaoqing Yuezhao Highway Co., Ltd.” (hereinafter referred to as “Guangzhu Section Company”) is the holding subsidiary of the company. The company held 75% of the shares before the transaction, and the company held 100% of the shares after the transaction. The consideration for the 25% share transaction of Guangzhu Duan Company was 747 million yuan. Zhaoqing Yuezhao Highway Co., Ltd. (hereinafter referred to as “Yuezhao Company”) is a participating subsidiary of the company. The company held 25% of the shares before the transaction and 50% of the shares after the transaction. Yuezhao Company's 25% equity transaction consideration was 690 million yuan. The total amount of this transaction was 1,437 billion yuan.

Expressway investment, construction, operation and management are the company's core business responsibilities. The Guangzhou-Zhuhai section of the Guangdong-Zhao-Expressway and the Beijing-Zhuhai Expressway are mature toll road assets in the Greater Bay Area. Toll cash flow is stable, and earnings can be expected. The acquisition is an integration of the stock of high-quality assets within the main business. It is estimated that the company's equity mileage will increase from 295.88 km to about 323.2 km, increasing operating cash flow, which is in line with the company's strategic direction of focusing on the core expressway business, strengthening, improving and expanding the main business, and does not involve diversified cross-border investment. Increasing the share of core road property rights through acquisitions can effectively expand the size of the main business assets. It is expected that the size of the company's assets will increase after the acquisition is completed, continue to consolidate the basic market of the main business, and strengthen the company's core competitiveness in the expressway operation sector in the Guangdong-Hong Kong-Macao Greater Bay Area.