ENM's bond purchase sends shares surging

Shares of ENM Holdings - owned 34.59 per cent by the estate of Nina Wang Kung Yu-sum, once Asia's richest woman - surged yesterday on news that it had acquired convertible bonds in a mainland property developer near Beijing.

The shares rose as much as 30 per cent before closing at 60 HK cents yesterday, 27.66 per cent up from last Friday.

ENM, a fashion retailer and wholesaler, said it had agreed to subscribe to HK$100 million worth of convertible bonds issued by Skyjoy Assets Management, which is involved in property investment and development in China.

Somercotes Ltd, which is wholly owned by the Wang estate, China State Construction and other investors will also subscribe for HK$300 million worth of convertible bonds in the property developer in Shijiazhuang .

The convertible bonds mature in 2015, and pay 12 per cent per annum. ENM said it was an attractive return, given the low interest rates now.

Upon exercise of the conversion right, subscribers will receive 3,600 shares in Skyjoy, representing 36 per cent of its total issued shares, of which ENM will hold 9 per cent.

The commercial property project in Shijiazhuang held by Skyjoy is located in a prime area, the company said.

The property, with a site area of 62,000 square metres, will be developed into a complex of office, hotel, service apartment and shopping mall.

However, approximately 10,300 square metres of land has not yet been awarded the land use right, the company said.

Skyjoy reported a net loss of HK$181,000 for 2009, compared with a net profit of HK$527,000 in the previous year.

Net liabilities of the company rose to HK$462,000 by the end of last year from HK$281,000 in 2008.