China Railway Erju Co., Ltd. (600528.SH) resumed its share trading on the stock market from Friday after announcement of a major asset restructuring scheme.
According to a company filing, it plans to swap all its assets and loans worth 7.24 billion yuan to 100 percent equities of four firms under the flag of China Railway Group Ltd (601390.SH), and the balance worth 6 billion yuan will be funded with proceeds from a planned private placement in which China Railway Erju Co., Ltd. would issue 369 million A shares at 11.68 yuan per share.
After the assets swap, the main business of the company will be shifted to industrial manufacturing from the building engineering construction, real estate development, and supplies sales.
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