Shanghai Industrial sells non-core businesses for HK$2.86b

Shanghai Industrial Holdings said yesterday that it had agreed to sell its loss-making semiconductor and dairy units for HK$2.86 billion, as part of a restructuring in which it will focus on its core businesses.

The flagship of eastern China's economic hub sold its 8.21 per cent stake in Semiconductor Manufacturing International Corp (SMIC) to its parent company, Shanghai Industrial Investment (Holdings), for HK$1.1 billion.

The SMIC shares were sold at 60 HK cents each, representing a 37.9 per cent premium to the stock's close yesterday of 43.5 HK cents.

The red-chip conglomerate will book a HK$840 million disposal loss from the stake.

Shanghai Industrial also agreed to sell its 30.17 per cent stake in Shanghai-listed Shanghai Bright Dairy and Food to mainland partner Bright Food Group for 1.55 billion yuan (HK$1.76 billion) at 4.93 yuan each, a 37 per cent discount to the dairy group's close yesterday.

It will book a HK$945 million pre-tax disposal gain from this transaction.