HONG KONG, Sept 10 (Reuters) - China High Speed Transmission Equipment Group Co Ltd said on Friday it would sell HK$2.26 billion ($291 million) worth of new shares, raising money to fund capital expenditures and investments in mechanical electrical integration.
In a filing with the Hong Kong bourse, the company said it would sell 130 million new shares to its major shareholder, Fortune Apex Ltd, at HK$17.38 each, representing a 6.05 percent discount to the previous close.
The major shareholder will subscribe to the new shares on completion of the sale of an aggregate 187 million existing shares at the same price to third-party investors. Fortune Apex's stake in the company will be reduced to 15.38 percent after the deal from 21.56 percent.
China High Speed Transmission Equipment Group Co Ltd and its shareholders are selling a total of 187 million shares to raise up to $424.7 million, a term sheet showed on Thursday.
Shares of China High Speed Transmission Equipment has fallen 2.4 percent so far this year to end at HK$18.50 on Thursday, compared with a 3.2 percent drop in the broader Hang Seng Index .
(US$1=HK$7.77)
(Reporting by Donny Kwok; Editing by Ken Wills)
((donny.kwok@thomsonreuters.com; +852 2843 6470; Reuters Messaging: donny.kwok.reuters.com@reuters.net)) Keywords: CHINAHIGHSPEED SHARESALE (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
In a filing with the Hong Kong bourse, the company said it would sell 130 million new shares to its major shareholder, Fortune Apex Ltd, at HK$17.38 each, representing a 6.05 percent discount to the previous close.
The major shareholder will subscribe to the new shares on completion of the sale of an aggregate 187 million existing shares at the same price to third-party investors. Fortune Apex's stake in the company will be reduced to 15.38 percent after the deal from 21.56 percent.
China High Speed Transmission Equipment Group Co Ltd and its shareholders are selling a total of 187 million shares to raise up to $424.7 million, a term sheet showed on Thursday.
Shares of China High Speed Transmission Equipment has fallen 2.4 percent so far this year to end at HK$18.50 on Thursday, compared with a 3.2 percent drop in the broader Hang Seng Index .
(US$1=HK$7.77)
(Reporting by Donny Kwok; Editing by Ken Wills)
((donny.kwok@thomsonreuters.com; +852 2843 6470; Reuters Messaging: donny.kwok.reuters.com@reuters.net)) Keywords: CHINAHIGHSPEED SHARESALE (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.