HONG KONG (Reuters) - Shenzhen Centralcon Investment Holding Co 000042.SZ plans to buy 23.2 percent of China South City Holdings Ltd (1668.HK) for HK$3.8 billion ($490 million) to become its biggest shareholder, China South City said.
The Shenzhen-listed real estate group will buy the shares from co-chairman Cheng Chung Hing at HK$2.05 per share, a 25 percent premium over its Wednesday closing price.
Shares in Hong Kong-listed China South City surged 9.2 percent to HK$1.79 in early trade on Thursday.
China South City said the two firms would become more competitive by leveraging their respective strengths in residential development, logistics, and trade centers.
Reporting by Donny Kwok; Editing by Edwina Gibbs