Everbright seeks $336m from share sale
China Everbright International, whose business ranges from toll bridges to property investments, expects to raise $336.6 million from a top-up share placement to fund the expansion of its environmental-protection operations.
The company placed 510 million existing shares at 66 cents each - representing a 9.59 per cent discount to its Tuesday closing price - to six independent investors. Existing shareholders then subscribed to the same number of new shares, which were issued at the same price after the placement, representing about 16.66 per cent of its enlarged issued share capital.
The transaction, due for completion tomorrow, diluted the stake of its parent firm China Everbright Holdings to 57.42 per cent from 68.9 per cent. Deutsche Bank was the placing agent.
The placement was done a day after the share price hit an 81/2-year high of 80 cents on Monday. The counter fell to 71 cents yesterday, with $384 million worth of shares changing hands.
Earlier this month, China Everbright International sold one of its office buildings to Citic Ka Wah Bank for $122.1 million. It will also use the proceeds to develop its environmental-protection business on the mainland.
Last month, the red chip's chief executive, Chen Xiaoping, said: 'We would use $1 billion to acquire and to expand our environmental-protection projects this year. We've already signed contracts worth more than $600 million.'
The company planned to use $200 million of the $321 million estimated net proceeds from the recent placement to expand its existing environmental-protection business and as general working capital. The balance would be used to fund new environmental-protection projects when the right opportunities arose, it said.
