Dah Sing Financial Holdings will sell 8.46 million new shares to Bank of Tokyo-Mitsubishi UFJ at HK$55.75 per share.
Dah Sing said in a statement yesterday that the net proceeds of about HK$471.72 million would be added to its surplus capital resources.
The HK$55.75 subscription price was at a premium of 13.43 per cent to Dah Sing's close of HK$49.15 on Tuesday. The shares yesterday rose 5.39 per cent to close at HK$51.80.
The new shares represent about 3.27 per cent of the enlarged share capital of the company. The transaction will boost the Japanese lender's stake in Dah Sing to 15 per cent of the enlarged capital from 12.12 per cent.
The shareholding of David Wong Shou-yeh, the chairman of Dah Sing, and his associates, will be diluted to 38 per cent from 39.29 per cent.
'I don't think the deal will have a very meaningful impact on the future profitability of Dah Sing,' said William Wong Kwok-wai, an analyst at BOCI Research.
