THE world's largest container manufacturer, China International Marine Containers (CIMC), plans to raise HKD3.9 billion (US$502.9 million) through the issue of 286.1 million shares at HKD13.48 each.
CIMC to sell 286m shares in Hong Kong to raise US$503mTHE world's largest container manufacturer, China International Marine Containers (CIMC), plans to raise HKD3.9 billion (US$502.9 million) through the issue of 286.1 million shares at HKD13.48 each.
Two existing shareholders, as well as a group of employees who have formed an investment vehicle, called Promotor Holdings, will purchase the shares via private placements in Hong Kong.
Promotor, which has been set up by CIMC executive director and president Mai Boliang along with other senior managers and employees, will take 143 million shares, equivalent to 4.9 per cent of the enlarged share capital.
Cosco Container, controlled by state giant China Ocean Shipping, will subscribe for 65.1 million shares but will boost its stakeholding only marginally to 22.8 per cent due to dilution of its existing holdings in Shenzhen, reports Lloyd's List.
CIMC will issue 77.9 million shares to Broad Ride, an affiliate of Chinese computer manufacturer Lenovo, whose shareholding will increase to 7.3 per cent from 5.2 per cent.
The share issue announcement comes after CIMC's cash reserves shrunk to CNY3.7 billion ($610.6 million) at end-September from CNY5.2 billion a year earlier as the company expanded its ship-lease and other businesses.
"The net proceeds from the proposed placing will be used as working capital of the company, providing stable financial support for the rapid development," Shenzhen and Hong Kong-Listed CIMC said in an exchange filing.
The three separate deals are subject to regulatory and other shareholders' approval.
