Developer plans rights issue

PUBLISHED : Wednesday, 25 July, 2007, 12:00am
UPDATED : Wednesday, 25 July, 2007, 12:00am

Shares of China State Construction International Holdings closed 4 per cent higher at HK$13.52 after the group announced plans to raise at least HK$999.7 million in a rights offer to partly acquire assets from its parent. These would include two insurance subsidiaries, for up to HK$400 million.

The company said it would offer shareholders one new share at HK$10 for every five held.

Of the funds to be raised, HK$520 million will be used to buy the assets from parent China Overseas Holdings, a unit of the country's construction ministry.

The rest will be used as working capital, the company said.

The company also said it would buy control of a car park business in Macau for up to HK$100 million and buy out three mainland civil engineering companies for up to HK$20 million.

It did not say how these businesses would affect its earnings.

The company's net profit for last year rose 46.2 per cent to HK$221.86 million on a 34.33 per cent increase in turnover to HK$10.29 billion.