China Star placing shares to raise $20m

China Star Entertainment is to place 50 million new shares in the company to an independent third party at 40 cents each, raising $20 million before expenses. Proceeds would be earmarked for the purchase of distribution rights of television drama programmes, the company said. The shares placed represent 15 per cent of the existing issued capital and 13.1 per cent of the company's enlarged share capital. On completion of the share placement, major shareholder Tiffany Chen Ming-yin (including her husband Heung Wah-keung's 4 per cent stake) will be diluted to 36.5 per cent.