Port and infrastructure investor PYI Corp Ltd said yesterday it would pay HK$167.8 million (US$21.6 million) to lift its stake in a mainland deep water port project by 7.4 per cent to 75 per cent.

PYI had agreed to buy the remaining 9.9 per cent interest held by a minority shareholder, Steady Forth Ltd, in a subsidiary holding the investment in the Yangkou Port project, on the coast of East China's Jiangsu Province, the company said in a statement.

PYI said it would issue 68.5 million new PYI shares at HK$2.45 each to Steady Forth for the asset, representing a 14.78 per cent discount to the stock's close of HK$2.875 on Tuesday.

The deal would boost PYI's holding in the project from 67.6 per cent.

The local government holds the remaining 25 per cent of the project.

Shares of PYI had eased 0.87 per cent to HK$2.85 by midday on Wednesday but have gained 94 per cent so far this year.

It outperformed the 10 per cent increase on the benchmark Hang Seng Index during the same period.

(HK Edition 04/13/2006 page3)