Shimao property service unit to raise HK$4.86 b through bonds, share sale

Finance | 20 Oct 2021 9:39 am

Shimao Services Holdings Ltd said on Wednesday it planned to raise HK$4.86 billion by issuing convertible bonds and selling shares for potential mergers and acquisitions, business expansion and working capital.

The property management service unit of Chinese property developer Shimao Group Holdings Ltd proposed to issue HK$3.11 billion worth of convertible bonds with maturity on Oct. 31, 2022, it said in a filing to the Hong Kong bourse.

The bonds, carrying an interest of 2.25 percent per annum, are convertible into 170.691 million new shares at HK$18.22 each, representing a 8.32 percent premium to Tuesday's close of HK$16.82.

Shimao Services also planned to issue 115 million new shares to its major shareholder Shimao Group at HK$15.18 apiece, or a 9.75 percent discount to Tuesday's close, raising HK$1.75 billion.

The major shareholder will buy the new shares on completion of sale of same amount of existing shares at the same price to not less than six third party investors, it added. (Reuters)

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