Gold Peak raises US$147m through shares placement

Gold Peak Industries (Holdings) has raised about US$147 million through a placement of seven million shares in its Singapore-listed GP Batteries International to international institutional investors.

The share placement, arranged by Baring Brothers, was priced at US$2.72 each, representing a discount of about 4.9 per cent to the closing price of $2.86 on August 6.

The company said the proceeds would be used as additional working capital.

Gold Peak chairman and chief executive Victor Lo said the share placement was well subscribed by international investors.

'We believe that the placement will broaden GP Batteries' shareholder base and enhance the liquidity of its shares,' he said.

After the placement, Gold Peak's stake in GP Batteries would be reduced to 50.91 per cent from 59.68 per cent.

Mr Lo said Gold Peak intended to retain its remaining stake in GP Batteries as its long-term investment.

GP Batteries, one of the world's major suppliers of specialty batteries, boasts annual sales of more than S$300 million (about HK$1.63 billion).

Listed in Singapore in 1991, the company has manufacturing facilities in Hong Kong, China, Taiwan, Malaysia, Singapore, Denmark and Poland.

Gold Peak, which also has interests in the manufacture of electrical installation products, automotive electronics, cable products, high precision parts, and loudspeakers, yesterday rose by 7.5 Hong Kong cents to close at HK$4.90, with nearly a million shares changing hands.