Zhongsheng Group to raise up to HK$5.6 bln in new shares, bond
HONG KONG Jan 19 (Reuters) - Chinese auto dealer Zhongsheng Group Holdings Limited will raise up to HK$5.6 billion ($722 million) by issuing new shares and a convertible bond to Jardine Strategic Holdings Limited, Zhongsheng said on Sunday.
The combined share placement and convertible bond would represent 20 per cent of Zhongsheng's enlarged issued share capital if the bonds were fully converted, it said in a statement to the Hong Kong bourse.
Zhongsheng said it would issue 238,560,162 shares at the subscription price of HK$10.79916, a discount of about 6.3 per cent to the closing price of HK$11.52 on Friday. The convertible bonds of HK$3,091,500,000 will pay 2.85 per cent annually.
Zhongsheng, an investment holding company, said it would use proceeds to develop its dealership network and for working capital. Zhongsheng's subsidiaries are engaged in the sale and service of motor vehicles.
JPMorgan Chase & Co is the financial adviser to Zhongsheng.
For a full statement, click link.reuters.com/vak26v
- Thousands of Gaza civilians flee after Israeli warning |
- Russia threatens Ukraine after shell crosses border
- Three dead, two wounded in Pasadena, California shootings
- Teen survivor of Texas shootings says slain family members 'in much better place'
- Heavy fighting breaks out near Libya's Tripoli airport, three dead