Restaurant chain operator Global Food Culture Group, controlled by kung-fu star Jackie Chan Kong-sang and associates, has raised about $54 million through a new-for-old share placement.
The placement, which involved a share sale and subscription by the controlling shareholders, will allow the company to raise the level of its free float in the market, reduce debts and bolster working capital.
Controlling shareholders Chan, Emperor Group substantial shareholder Albert Yeung Sau-shing and solicitor Vincent Cheung Ting-kau sold 75 million shares yesterday, representing about 15.25 per cent of the existing issued share capital, to institutional and retail investors.
The shares were sold at 57 cents each, a 6.5 per cent discount to Monday's closing price of 61 cents. The stock was suspended from trading yesterday.
Global Food then issued 98.36 million new shares, about 16.67 per cent of its enlarged share capital, to Chan, Mr Yeung and Mr Cheung at the same price.
The three would together hold about 29.56 per cent of the company after the placement and subscription, Global Food said.
