HKC (Holdings), the property development flagship of Indonesia's Widjaja family, has boosted its war chest by HK$9.4 billion after selling shares to investors that included New York-based private equity fund Cerberus. The disposal is one of the biggest secondary share sales this year, taking advantage of the strength of the stock market. The funds will be used for the group's ambitious push into the mainland property market, where it is developing a six billion yuan residential-commercial project in Shanghai and planning mixed-use property projects in Shenyang and Qingdao. More than 50 per cent of the money to finance those projects will come from new share issues and the rest from a term loan. Cerberus, through its Asian unit, agreed to pump HK$7 billion into HKC by subscribing to 1.37 billion shares for HK$3.11 billion and providing the group with a three-year loan of US$500 million. The deal will give Cerberus an 18.6 per cent stake in HKC, making the private equity firm the second-largest shareholder after chief executive Eric Oei. Mr Oei is the grandson of Eka Tjipta Widjaja, the founder of Indonesia's biggest conglomerate, Sinar Mas Group. Mr Oei will tighten his grip in HKC by subscribing to 686.31 million new shares for HK$1.55 billion, but the dilutive impact of the new share issue will squeeze his shareholding to 46.2 per cent from the existing 54.6 per cent. Penta Investment Advisory, an Asia-based private equity fund, will see its shareholding in HKC remaining unchanged at 14.4 per cent as it will buy 343.15 million new shares for HK$779.97 million. The new shares were priced at HK$2.273 each, a 22.2 per cent discount to the last trading price of HK$2.92 on Friday last week, or equivalent to the 30-day average before the deal. In addition to the new share sales, HKC proposed to issue to shareholders one bonus warrant for every 10 existing shares they hold. Cerberus hit the headlines in May when it paid US$7.4 billion for 80.1 per cent of German carmaker Chrysler Group.