Optical frames-maker Moulin International Holdings is to bring in HSBC Private Equity Management as a strategic investor by issuing to it almost US$15 million in convertible notes. The transaction is expected to strengthen Moulin's international presence by exploiting HSBC's strong global network, according to Moulin's managing director Cary Ma Lit-kin. The notes, which will be issued to two HSBC-managed funds - Vintage Year and China Fund - will have to be compulsorily converted to ordinary shares in Moulin at 87 HK cents each when they expire in three years. Moulin will use the net proceeds of US$14.92 million as working capital. The conversion price represents a 13.9 per cent premium on the average closing price of 76.4 HK cents for the five trading days last week. 'We are pleased to bring in HSBC as our long-term investor. Our management strongly believes that this strategic relationship will serve as a strong foundation for Moulin's future expansion into the world market,' Mr Ma said. Full conversion of the notes will involve the issue of 133.62 million new Moulin shares, or 6.3 per cent of its enlarged capital, based on the 1.94 billion shares outstanding at the moment. The interest of chairman Ma Bo-kee and his family in Moulin will be diluted to 37.88 per cent after the conversion from the existing 40.5 per cent. Mr Ma and his family members have undertaken they will maintain their interest in Moulin at more than 40 per cent unless, and until, all the notes have been converted or redeemed. Moulin achieved an attributable profit of HK$226.52 million during the year to March 31, up 20.11 per cent from last year. DEALS