HONG KONG Jan 19 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
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
For a full statement, click link.reuters.com/vak26v
($1 = 7.7553 Hong Kong dollars)
(Reporting by Stephen Aldred; Editing by Mark Potter)