BEIJING, June 7 -- Shanghai International Port (Group) Co, the largest port operator on China's mainland, plans to merge with its publicly traded unit to pave the way for a listing in Shanghai.

    The group intends to float shares at 3.67 yuan (46 US cents) a share and offer 4.5 of these certificates for every share in its Shanghai-listed unit, Shanghai Port Container Co, the two companies said in a joint statement posted at the Shanghai stock exchange yesterday.

    "The group will realize its listing in Shanghai through its listed subsidiary," said Xu Yinhui, an analyst at Guotai Jun'an Securities Co.

    Shanghai International Port now owns 70.18 percent of Shanghai Port Container, which had 1.8 billion shares at the end of the first quarter of this year.

    Shanghai Port Container will be delisted after the merger, which is expected to take about a year.

    Approvals needed

    The share swap will first need approval from regulators and the big shareholders of both companies, according to the statement. After the merger, Shanghai International will then apply to the Shanghai Stock Exchange for a public listing.

    "It will most probably float additional shares soon after it finishes listing in Shanghai, in a move to raise money on the stock market," Xu said.

    Shares in Shanghai Port Container jumped 10.02 percent to 17.02 yuan yesterday after resuming trading from a five-day suspension since May 30.

    Shanghai International handled 18.08 million 20-foot containers last year, up 24.3 percent from a year earlier. The company reported a net profit of 2.16 billion yuan last year, without giving a year-on-year comparison.

    "The group will enhance its efforts in the Yangshan Deep-Water Port and seek cooperation with international ports," Shanghai International said in the statement.

    Shanghai International is the operator of the first phase of Yangshan Deep-Water Port. Since operation began in December, the first five berths of the new port have handled 1.06 million TEUs (20-foot equivalent units) of containers, compared with the city's total 18.08 million containers handled last year.

    The second phase of the Yangshan port, which has attracted several soverseas investors, will start operation by the end of this year.

    (Source: Shanghai Daily)