bodyType

customContents

entityId

entityUuid

articlePageQuery

filter

article

articleBaseAdvertisingInfoArticle

articleListArticle

articleSeoArticle

hooksArticleAcknowledgementGateOverlayArticle

hooksTrackPageViewArticle

hooksContentInterestArticle

articleLinkingDataContent

hooksAmpRedirectArticle

articleSchemaContent

liveArticle

advertZone

sentiment

contentLock

topics

types

sections

paywallTypes

createdDate

publishedDate

sponsorType

urlAlias

moreOnThisArticles

commentCount

authorLocations

authors

corrections

displaySlideShow

multimediaEmbed

printHeadline

seriesContainer

articleSpeeches

socialHeadline

headline

images

flag

firstTopic

glossary

flattenTypeIds

image

relatedLinks

relatedNewsletters

__typename

sponsor

pdfFiles

seriesReverseOrder

series

disableOffPlatformContent

published

updatedDate

summary

subHeadline

body

keywords

readingTime

customTimezone

liveContents

Toh Han Shih

Xinyi Glass Holdings, a debt-ridden mainland glass maker, said yesterday it had raised net proceeds of HK$1.14 billion from sales of its shares and convertible bonds to Och-Ziff Capital Management.
Hong Kong-listed Xinyi Glass also raised net proceeds of HK$232 million from selling warrants to Och-Ziff, which will give the US asset management firm up to 5.5 per cent of subsidiary Xinyi Solar Holdings. 
'Xinyi Solar hopes it can be listed on the main board of the Hong Kong stock exchange by the end of this year,' said Sinopac Securities analyst Vivien Chan. 
She said the mainland price of solar glass rose 15 per cent year on year in the first quarter. 
'It can do it this year. The solar glass industry has recovered.' 
In November, Xinyi Glass called off the Hong Kong listing of Xinyi Solar, citing volatility in global capital markets and the European debt crisis. Xinyi Solar had hoped to raise US$150 million from its aborted IPO, according to media reports.
'The board intends to use the proceeds of the subscription [of Xinyi Glass shares and convertible bonds] as future capital expenditure, future investments, repayment of debt and general working capital,' Xinyi Glass said.
'Xinyi Solar intends to use the proceeds of the [warrants] subscription as repayment of its existing loan. The subscriptions will provide the company [with] financing without significantly increasing its finance costs and introduce an independent and significant investor.'
Och-Ziff, which is listed on the New York Stock Exchange, manages US$29.8 billion of assets globally. 
On Thursday, Och-Ziff signed an agreement with Xinyi Glass that will enable the US firm to own as much as 5.5 per cent of Xinyi Glass, the mainland firm announced yesterday. 
 Och-Ziff bought 82.73 million Xinyi Glass shares, or 2.2 per cent of the company, at HK$4.69 per share, a 7.5 per cent discount to Xinyi Glass' closing share price of HK$5.07 yesterday, as well as convertible bonds that can be converted to 129.33 million Xinyi Glass shares, or 3.3 per cent of the firm, at a conversion price of HK$6 per share. 
On the same day, Och-Ziff bought 98.09 million warrants with an exercise price of HK$2.38 per warrant. If all warrants are exercised, Och-Ziff will own 5.5 per cent of Xinyi Solar, a mainland solar glass manufacturer. 
A major reason for Xinyi Glass' deal with Och-Ziff was to repay debt, Chan said. The financing cost of Xinyi Glass jumped 374.7 per cent to HK$32.5 million last year. Its net gearing ratio rose to 42.3 per cent at the end of last year from 32 per cent at the end of 2010, while its bank borrowings surged 58.5 per cent to HK$4.32 billion at the end of last year from the year-earlier period.



Debt-ridden Xinyi Glass raises HK$1.14 billion