GOLD Peak Industries is to lower its interest in Singapore-listed subsidiary, GP Batteries International, which plans to raise US$26.8 million through a share placement.

Gold Peak will ultimately hold 54 per cent shares of GP Batteries, down from 59 per cent.

GP Batteries will issue 3.6 million new shares, accounting for 10 per cent of its existing share capital, at US$7.45 each. The shares will be placed with institutional and individual investors by Morgan Grenfell (Asia).

Gold Peak said GP Batteries planned to use the proceeds for machinery and equipment, to cut bank borrowings and to increase working capital.