Chinese LCD maker BOE plans $7.5 bln offering to expand production
SHANGHAI, July 25
SHANGHAI, July 25 (Reuters) - The world's fifth-largest LCD panel maker, BOE Technology Group Co Ltd, said on Thursday it plans to raise 46 billion yuan ($7.5 billion) in the biggest Chinese equity offering this year.
The funds will be used in the construction of high-generation panel production lines and the acquisition of shares in an existing joint venture called BOE Display Technology.
The Shenzhen-listed company, with a market capitalization of $5.1 billion, will offer 9.5-22.4 billion shares with an issue price of 2.10 yuan per share in a private placement.
Excluding the part set aside for the acquisition of equity in the venture, the company is expected to raise 37.5 billion yuan in cash.
The company's shares tumbled 8.4 percent on Thursday as its planned placement raised concerns the largest equity offering in a year could put pressure on tight liquidity conditions on the mainland.
Similar to the company's refinancing programs in the past, the new capital raising has support from local government-owned companies, with three of them agreeing to buy a combined 20.83 billion yuan worth of shares in the placement, BOE said.
Beijing State-owned Assets Management will swap its 48.92 percent stake in Beijing BOE Display Technology to subscribe to 8.53 billion yuan worth of shares, while Hefei Jianxiang Investment will take up 6 billion yuan worth through a cash or debt-to-equity swap. Chongqing Yuzi will take up another 6.3 billion yuan of shares in cash.
Funds raised will be invested two TFT-LCD production lines, one in Hefei and one in Chongqing, and an AM-OLED production line in Ordos.
The Ordos production line is expected go into production in November, while the Hefei line has been completed with equipment being moved in. The Chongqing project has recently been signed, with construction expected over the next 24 months.
($1 = 6.1360 Chinese yuan)
(Reporting by David Lin; Additional reporting by Clement Tan in HONG KONG; Writing by Lavinia Mo in Hong Kong; Editing by Elzio Barreto and Matt Driskill)
- Housing, jobs data weaken, but overall economic picture still upbeat
- Putin critic Khodorkovsky in Germany after pardon |
- Target probe eyes overseas hackers; stolen cards for sale online
- Pizza outlet attacked as India, U.S. fail to cool diplomat row |
- New York Mayor-elect's reputation for lateness parodied on Twitter