omniture

Greater China Appraisal - Valuer of the Toll Road Operating Rights of China Merchants Holdings (Pacific) Limited for Cash Offer

Income approach was applied in accordance with the International Valuation Standards on business valuation published by International Valuation Standards Council ("IVSC").

HONG KONG, Aug. 1, 2016 /PRNewswire/ -- Greater China Appraisal ("GCA"), a leading professional valuation services provider in Hong Kong, was appointed by China Merchants Holdings (Pacific) Limited ("CMHP") as the valuer in relation to the valuation of operating rights of eight toll roads ("Toll Operating Rights") of the subsidiaries and joint ventures of CMHP for the voluntary conditional cash offer made by Easton Overseas Limited, an indirect wholly-owned subsidiary of China Merchants Group Limited. THI Asia Consultants Limited is the traffic consultant of this project. The cash offer transaction is under process as SGX-ST has no objection to CMHP's proposed delisting application.

Based on the report of the Ministry of Transport of the People's Republic of China, the total length of expressway in China increased from 74,100 kilometers in 2010 to 123,500 kilometers in 2015, with an annual compound annual growth rate of 10.76%. The investment in expressway construction totalled RMB 795 billion in 2015. The development of road and highway construction is expected to be stimulated with the implementation of the Belt and Road Initiative, the Yangtze River Economic Zone's Development and the Coordinate Development of Beijing-Tianjin-Hebei.

"We appreciate the trust from the management of CMHP." said Mr. Max Tsang, Director of GCA. "The valuation of the Toll Operating Rights was on the basis of fair value in accordance with the International Valuation Standards on business valuation published by International Valuation Standards Council ("IVSC"). Income approach was applied to the valuation as economic benefit streams of the Toll Operating Rights could be identified. To complete the valuation, we have referred the technical consultant's report, the latest operating data and the regional toll construction planning."

According to Max, this valuation project is one of GCA's significant infrastructure-related projects this year. Other projects of port, power plants, renewable energy and water plants in China and overseas for different valuation purposes including Initial Public Offering ("IPO"), Mergers and Acquisition ("M&A"), Purchase Price Allocation ("PPA") and impairment testing were performed according to the requirements of the International Financial Reporting Standards ("IFRS") and Hong Kong Financial Reporting Standards ("HKFRS").

About CMHP

CMHP was incorporated in Singapore in 1981, is a member of the China Merchants Group and is its largest company in Southeast Asia. Through its subsidiaries, CMHP principally engaged in operation of toll roads in China, mainly in Zhejiang province, Guangxi Zhuang Autonomous Region and Guizhou province. These roads form the main component of the national and provincial road networks.

About Greater China Appraisal

Established in 1997, Greater China Appraisal provides business and intangible asset valuation, real estate and industrial assets valuation, financial instruments valuation, mineral and energy valuation as well as business consulting services. It has undertaken valuation for over 400 listed companies in Hong Kong, China, Singapore, Australia, United Kingdom, United States and Germany.

Greater China Appraisal is a corporate member of The International Valuation Standards Council ("IVSC"), a regulated firm under The Royal Institution of Chartered Surveyors ("RICS"), an associate member of China Appraisal Society ("CAS") and a Valuation Institutes for Engagement by State-owned Enterprises under State-owned Assets Supervision and Administration Commission of the State Council ("SASAC").

For further information, please contact Mr. Max Tsang at max.tsang@gca-group.com or +852-2511-6868, or visit www.gca-valuation.com

Source: Greater China Appraisal
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