Centergate Tech in US$2.6b share for real estate swap

Building and real estate development firm Beijing Centergate Tech Holding Co (000931.SZ) said Tuesday it will place 1.227 billion shares worth US$2.58 billion (RMB18 billion) with controlling shareholder Beijing Pengtai Investment Co and other parties in exchange for the real estate assets of Beijing Pengrun Real Estate Co, the Shanghai Securities News reported. Pengtai investment is controlled by billionaire businessman Huang Guangyu, the owner of Gome Electrical Appliance Holdings, China’s biggest electronics goods retailer. The company’s shares have been in a trading hold for seven months. Its operating revenue dropped 21.08% to US$319.15 million (RMB2.23 billion) in 2007 as it posted a net loss of US$157.43 million (RMB1.10 billion). Beijing Pengrun’s real estate assets include some in the western Chinese city of Chongqing.