Embattled Goldin scraps $1.3b share placement

Business | Avery Chen 16 Nov 2020

Goldin Financial (0530) has terminated a placing agreement that would have raised around HK$1.38 billion due to the current market conditions, the debt-laden local developer said last night.

Goldin said earlier last month it would place about 1.4 billion new shares at HK$1 per share to not less than six independent investors.

The new shares are equal to 20 percent of the total existing shares, or around 16.67 percent of the issued share capital after placement.

The net proceeds were intended to be used for repayment of indebtedness and general working capital, it had said.

The developer and Titan Financial Services, the placing agent, entered into a termination agreement to suspend the placing on November 13.

Goldin said it will consider engaging in further fundraising activities and will keep the market informed.

The developer has warned of a HK$6.1 billion loss for the year ended June from a profit of HK$6.37 billion a year ago.

It had planned to sell the Goldin Financial Global Centre, a 28-story Grade A office tower in Kowloon East, for HK$14.3 billion. However, Hong Kong's High Court ruled that the tower remains under the control of the receivers.

Knight Frank, the sole agent for the sale of the Goldin Financial Global Centre, had valued the tower at around HK$12 billion, equivalent to a unit price of over HK$14,000 per sq ft.

Goldin sold a residential site in Kai Tak at a loss of HK$2.6 billion in May.

Gerald Ma Lai-chee, who worked for CK Asset (1113) for 24 years, resigned as vice-chairman and non-executive director just two-and-a-half months after his appointment.



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