China's Fuyao Glass plans 3 bln yuan-plus shr sale

SHANGHAI, Feb 25 (Reuters) - Fuyao Group Glass Industries Co Ltd (600660.SS: Quote, Profile, Research, Stock Buzz), China's top automotive glass maker, said on Monday it plans to raise more than 3 billion yuan ($420 million) by selling additional shares to fund expansion.

Fuyao Glass plans to sell 100 million yuan-denominated A shares, equal to 10 percent of its current share capital, the company said in a statement to the Shanghai Stock Exchange.

The share sale, which is subject to shareholder approval, would raise about 3.6 billion yuan, based on Fuyao Glass's last share price of 36.97 yuan. The actual figure will be based on the average price during the 20 trading days prior to the release of the share sale document.

The shares were suspended from trade on Monday morning due to the announcement.

The company, based in the southeast province of Fujian, said it would use about 3.1 billion yuan from the proceeds to expand production capacity and upgrade a research centre.

Any proceeds exceeding that amount would be used for operating capital, while any shortfall would be supplemented by other fund-raising means, it said.

Last November, China's securities regulator blocked a deal by Fuyao Glass to sell a nearly 10 percent stake to an investment arm of Wall Street bank Goldman Sachs (GS.N: Quote, Profile, Research, Stock Buzz) for $119 million.

Fuyao Glass also said on Monday that its 2007 net income jumped 49 percent to 917.21 million yuan, as demand from domestic and international clients boosted sales and profits.

The company proposed a 1-for-1 bonus share issue for 2007 plus a cash dividend of 5 yuan for every 10 shares. (For details click [ID:nSHA341527]) (US$1=7.14 Yuan) (Reporting by Samuel Shen; Editing by Edmund Klamann)