SOUTH China Holdings has placed out 20 per cent of South China Industries (SCI) privately, raising $87.34 million to invest in mainland manufacturing.
The issue of old shares in SCI, formerly known as Wah Shing Toys, has diluted the holding of parent company South China Holdings from 64.7 per cent to 53.89 per cent or 239.37 million shares.
In total 74.02 million old 10-cent shares were placed at $1.18 a share, a 4.07 per cent discount to the share's close yesterday.
South China Securities and HG Asia were placing agents with management from South China Capital.
The company is taking up new shares at $1.15 a share, a price arrived at after taking into account the placement price and the $2.3 million in expenses, a company statement said last night.
The shares were placed with independent third parties, according to a South China director, mostly overseas.