GSH

GSH: Likely positive sentiment, after grp announced that it was acquiring a 60% stake in a to-be-incorporated ppty dev company in China, for RMB314.86m ($61.92m). A MOU has been signed with Chongqing Boneng Ppty Dev for the proposed JV co. Through the JV, GSH Investments and BoNeng will jointly develop 3 vacant land plots located in Taohua New City, Changshou District in Chongqing, China. The plots would be developed into a high-end residential community - including but not limited to garden bungalows, sub high-rise buildings and high-rise buildings - and high-end commercial properties. Ahead of the proposed acquisition, BoNeng will incorporate the proposed JV with a registered capital of RMB524.77m, of which RMB8m is in cash, and RMB516.77m by way of capital injection of the land use rights owned and held by BoNeng for the Changshou Land Plots. BoNeng will contribute fully to the registered capital. Counter will also be removed from SGX watch list with effect from Tue. GSH met the profitability and market capitalisation criteria in May, and submitted the application for removal from the watchlist on May 31, 2012.