Shares of Lai Sun Development (LSD) and parent Lai Sun Garment (International) took a battering yesterday after the announcement of cash calls at substantial discounts. LSD shares slumped 32.2 per cent, or 38 cents, to close at 80 cents. Lai Sun Garment shares tumbled 41.9 per cent, or 67 cents, to 93 cents. Trading in both was suspended on Friday and Monday. LSD proposed a one-for-one rights issue at 50 cents per share to raise between $884 million and $998 million before expenses. Lai Sun Garment announced a $575 million four-for-one rights issue at 50 cents per share, together with a $39 million new share placement at $1.25 per share to Far East Consortium International and Yoshiya International. LSD's rights issue price represents a 90.1 per cent discount to the adjusted net tangible asset value of $5.07 per share and a 40.5 per cent discount to the theoretical ex-rights price of 84 cents. Lai Sun Garment intends to use $396 million of its funds raised to subscribe for its entitlements under the LSD issue. The balance of about $168 million will be used to repay debt. LSD will use funds from its rights issue to reduce loans due for repayment early next year. Following the placement and issues, the direct interest of the family of Lai Sun chairman Lim Por-yen in LSD is expected to drop to 5.93 per cent, while Nan Fung Textiles will see its shareholding rise from 18.18 per cent to 24.12 per cent. Lai Sun Garment will maintain its 44.76 stake in LSD.