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Langi Chiang

Mainland commercial developer Cofco Land Holdings plans to issue no more than 6.2 billion new shares, or 39.6 per cent of its enlarged capital, to refinance a HK$12.5 billion cash acquisition of mixed-use property assets from parent company.
The company, a property arm of the mainland’s agricultural conglomerate Cofco Corp, also announced in a stock filing on Tuesday that it would issue US dollar denominated bond, with the final sum yet to be determined.
Cofco Land Holdings in September announced its decision to exercise a call option to buy six “Joy City” branded projects in Beijing, Shanghai, Shenyang, Tianjin and Yantai, together with three other commercial projects in Beijing and Shanghai.
Parent Cofco Corp will buy 67.03 per cent of the new shares to keep its current stake.
The company has appointed Goldman Sachs, BOCI Asia, HSBC, DBS Bank, JP Morgan, ANZ, Bank of Communications and ICBC as the joint lead managers and book runners.
The acquisition will terminate by the end of June next year if conditions, including refinancing, are not met.
Meanwhile, another mainland developer Longfor Properties said yesterday it would issue new shares worth HK$3.2 billion to two largest shareholders who are injecting the remaining 8.7 per cent of equity interest in Chongqing Longhu Development Co that the listed firm does not own yet.
The new shares, representing 6.3 per cent of Longfor Properties’ enlarged capital, will be issued at HK$8.69, the average closing price in the last five trading days.
It will increase Longfor Properties founder and chairman Wu Yajun’s stake to 44.33 per cent from 43.07 per cent, and push that of co-founder Cai Kui up to 29.24 per cent from 28.71 per cent, with a lock-up period of six months.
Longfor Properties shares opened flat at HK$9.27 in the morning, while those of Cofco Land Holdings opened down 0.6 per cent at HK$1.66.


Cofco Land Holdings plans share issue to refinance HK$12.5b acquisition of parent assets

Acquisitions boost Cofco earnings 117pc to $176m

Cofco Land in talks to buy malls from parent

Joy City in Shanghai is one of six on the mainland. Photo: SCMP Pictures

Zhou Zheng, the chairman of Cofco Land Holdings, says the company will have to raise funds to finance the asset injection. Photo: Simon Song

Ownership reform will allow Cofco Land to become a global firm, chairman says

Zhou Zheng says Cofco Land hopes to attract investment from real estate funds and commercial developers in the private sector. Photo: Simon Song

.css-sioo19{color:#c79a00;}New | Cofco Land Holdings plans share issue to refinance HK$12.5b acquisition of parent assets

New | Cofco Land Holdings plans share issue to refinance HK$12.5b acquisition of parent assets