S&P puts Shanghai Industrial on positive watch

Standard & Poor's said it placed on CreditWatch with positive implications the B long-term corporate credit rating on Shanghai Industrial Urban Development Group Ltd., along with the B- rating its notes.

The watch placement follows news that the company will acquire Shanghai Industrial Holdings Ltd.'s 59% stake in Shanghai Urban Development (Holdings) Co. Ltd., S&P said.

The total consideration of the transaction is HK$6.11 billion.

The deal would make Shanghai Industrial Urban Development more strategically and financially integrated with its parent, S&P said.

The proposed transaction is positive for Shanghai Industrial Urban Development's credit profile, the agency said.

It demonstrates Shanghai Industrial Holdings' strategy to make Shanghai Industrial Urban Development the main holding company for its various property interests, S&P said.

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