GDF Guangdong Dev.

RNS Number:7940B
Guangdong Development Fund Ld
21 April 2006



Guangdong Development Fund Limited

Disposal

21 April 2006





Guangdong Development Fund Limited ("the Fund") announces that GDF (New
Beijiang) Limited ("GDF New Beijiang"), a wholly-owned subsidiary of the Fund,
has signed a conditional sales agreement for the disposal of its 14% equity
interest in Pak Kong Transco Limited ("Pak Kong") to Qingyuan Traffic Build
Development Company ("the Chinese Party"), for a consideration of RMB34.27
million (approximately US$4.25 million) payable in cash.  The Sales Agreement is
subject to the approval of the relevant authorities of the Chinese government.



Pak Kong operates two toll bridges at Qingyuan City in Guangdong Province. The
total initial investment made by GDF New Beijiang was US$4.70 million and the
total income received from the date of investment up to the date of this
announcement was US$7.39 million.  The carrying value of the Fund's investment
in Pak Kong is US$4.25 million (unaudited) as at 31 December 2005.  The Fund
expects that the transaction will recognise a realised gain of approximately
US$1.76 million from the disposal in its financial statements for the year
ending 31 December 2006.



The decision of the transaction was made in line with the resolution, passed at
the Extraordinary General Meeting of the Fund held on 23 February 2001, of
disposing all or alternatively, substantially all of the investment portfolio of
the Fund in a timely and orderly fashion and distributing the net proceeds of
such disposals to the shareholders.



The net cash proceeds from the disposal, after the Fund taking into
consideration its available cash on hand, is to be distributed among
shareholders of the Fund.  The carrying value of the Fund's investment in Pak
Kong represents 19.20% of the unaudited net asset value of the Fund as at 31
December 2005.


                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

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