Retailer Easyknit International Holdings has defended its decision to conduct a rights issue almost every two months for the past year despite vocal criticism from minority shareholders.
A group of minority shareholders yesterday condemned a proposal to again tap shareholders' pockets by selling rights shares worth $300 million, its seventh such issue in the past 12 months.
Vice-president Alan Tsang Yiu-kai confirmed he had received complaints from about 30 minority shareholders regarding the latest rights issue.
Minority shareholders will vote on the proposal at 9am on Friday at the Gold Coast Hotel in Tuen Mun.
Mr Tsang said the fund raising was 'the company's best access to much-needed cash'.
'It has been very difficult to borrow from banks after the onset of the financial crisis.' The company spent $1.4 billion taking over former department store chain Shui Hing and more than $1 billion acquiring commercial properties during the past year.
