HONG KONG (Reuters) - Property developer Ronshine China Holdings Ltd (3301.HK) said on Wednesday it plans to sell HK$1.1 billion ($140 million) worth of new shares to its controlling shareholder, raising funds for development and for working capital.
The Hong Kong-listed firm said it would sell 103.5 million new shares to parent Dingxin Co Ltd at HK$10.62 apiece, a 6.02 percent discount to its previous close.
Dingxin, which is indirectly controlled by Chairman Ou Zonghong, will buy the new shares after selling the same amount of existing shares at the same price to third party investors. UBS AG Hong Kong Branch is the placing agent.
Dingxin and Ou’s combined stake in Ronshine will fall to 63.4 percent from 67.8 percent after the deal.
Reporting by Donny Kwok; Editing by Edwina Gibbs