MORNING Star Holdings will announce today a one-for-two rights issue to raise $80 million to fund the expansion of its travel and property division. The rights issue, the first by the group, will create 100 million shares. Morning Star finance director Ricor da Silveira said: ''The growth of the company has been significant recently and we want to increase the company's capitalisation to undertake projects to expand the company's travel and property division.'' The new capital will be used to fund travel operations in China, Vietnam and Hong Kong, including the promotion and marketing activities of the Morning Star Travellers' Plus Club. The club, launched last April, has gained more than 20,000 members and the group is now planning to open new centres in Mongkok and Central. The proceeds will also be used to fund the group's property development in Suzhou and Zhongsan in China. Mr da Silveira said that the rights issue would also increase the consolidated shareholders funds of the company and significantly reduce the group's borrowings.
