China's top two high-speed rail (HSR) makers, China North Railway (CNR) and China South Railway (CSR), will officially swap stocks on Wednesday, a big step forward in their long-awaited merger.
CNR shares will be officially delisted from both the A-share market and the Hong Kong stock market starting Wednesday, according to statements by the two companies filed with the Shanghai Stock Exchange on Monday.
The stock swap ratio has been set at one CNR share for 1.10 shares of CSR Corporation Ltd.
After the stock swap, a new company called CRRC Corporation Ltd. will be formed and inherit all assets, liabilities, business, staff, contracts, certificates and all other rights and obligations of the two companies. The shares will be relisted on the Shanghai Stock Exchange.
According to the merger plan, the incorporated company will focus on overseas industrial distribution and management in an effort to build a promising global influence.
