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Wharf Holding to sell 50% stake of HK Tramways to Veolia

Published: 07 Apr 2009 20:22:40 PST

Apr. 8, 2009 (China Knowledge) - Hong Kong conglomerate The Wharf (Holdings) Ltd<4> has agreed to sell its 50% stake in the city's iconic tramway operator Hong Kong Tranmways Ltd to French environmental and transportation giant Veolia, Reuters reported on Tuesday.

After the transaction, the two companies will set up a 50/50 joint venture and will jointly run the city's tramway, which has been in operation since 1904 and transports nearly 230,000 passengers each day.

Veolia later will also consider acquiring the remaining 50% stake, according to the report.

The Wharf did not reveal further details of the deal.

The deal is expected to help Veolia learn more about the tram operation and later tap into the tram market on the Chinese mainland, said the French company.

The tram system, which manages the double-decker trams on Hong Kong Island, is a popular tourist attraction.

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