HKNPL to have new shareholder

The Hong Kong Monetary Authority announced today (5 March 1997) that the Financial Secretary has entered into an agreement with the China Banknote Printing and Minting Corporation (CBPMC) to sell 3,825,000 Ordinary Shares of the Hong Kong Note Printing Limited (HKNPL). The consideration for the sale of these shares, which represent 15% of the issued share capital of the HKNPL, is HK$42.5mn.

HKNPL, which operates a banknote printing plant in Tai Po, is fully owned by the Hong Kong Government through the Exchange Fund. The HKNPL was acquired by the Hong Kong Government in April 1996 and its main line of business is the printing of HK$ banknotes.

"I am pleased to have CBPMC participating in HKNPL as a minority shareholder. I am sure that HKNPL will benefit from this new business relationship, given CBPMC's expertise in banknote printing and its position in China in the security printing business," said Mr Donald Tsang, the Financial Secretary.

CBPMC is a subsidiary enterprise of the People's Bank of China responsible for the printing and minting of RMB currency. It possesses comprehensive expertise in banknote printing, including design, plate-making and printing of banknotes. It also manufactures anti-counterfeit papers and printing inks. CBPMC currently operates 15 printing and minting plants as well as a technology development institute.

In welcoming CBPMC's participation in HKNPL, the Chief Executive of HKMA and Chairman of the HKNPL Board of Directors, Mr Joseph Yam said, "As a small and stand-alone banknote printing operation, HKNPL must be able to tap the best technical know-how in this highly specialised field. While the printing of HK$ banknotes will continue to be its core, and profitable, business, HKNPL needs to explore other security printing business opportunities both within and outside Hong Kong. I am sure that CBPMC's participation as a business partner will strengthen HKNPL's ability to explore such opportunities in the years ahead."

Hong Kong Monetary Authority
5 March 1997