HONG KONG : China Merchants Port Holdings announced that the company will increase capital to its joint venture Djibouti Asset Company for its development of commercial and infrastructure projects at the port of Djibouti.

The deal will be funded by the capital increase from the company, China Merchants Investments Limited (CMI) and Cheer Signal (a wholly-owned subsidiary of China Merchants Shekou Industrial Zone Company) in accordance with their respective shareholdings in Lac Assal Investment Holding Company Limited (Asset Joint Venture). The company, CMI and Cheer Signal will fund $12m, $12m and $6m, respectively into the Asset Joint Venture.

Lac Assal Investment Holding, is a company incorporated in Hong Kong formed by the company, CMI and Cheer Signal for the purpose of investment into the Djibouti Asset Company.