Aoyuan chief aims to lift stake in deal

China Aoyuan Group (3883) says its chairman Guo Ziwen will increase his position by buying shares worth HK$600 million and it has introduced Peter Lee Ka-kit, the executive director and co-chairman of Henderson Land Development (0012), to subscribe for HK$400 million new shares.

Lee agreed to subscribe for nearly 107.88 million shares, or 3.85 percent of the total shares, at HK$3.708 apiece on September 27, an exchange filing said. This marked a 6 percent discount from yesterday's closing price of HK$3.95.

Then Guo will buy 161.81 million shares at the same price, increasing his stake in the company from 55.61 percent to 56.01 percent of the total shares. Lee's stake drops to 3.64 percent.

The company said it intends to utilize the net proceeds for working capital and general corporate purposes.