CHINA Everbright International intends to raise $561.6 million through a rights issue to repay money borrowed to invest in a China joint venture and to expand the group's securities business.
The company said it planned to issue 468 million new shares at $1.20 each, with three rights shares offered for every two existing shares.
On warrant will be issued for every three rights shares.
Of the $552.6 million net proceeds, about $175 million will be used to repay US$22 million borrowed to pay for a 10.93 per cent interest in the enlarged share capital of a joint venture in Shenzhen.
The company, through a wholly owned subsidiary, has agreed to take an interest in 999 Chia Tai Pharmaceutical Co, for 159.9 million yuan (about HK$142 million), to be settled in US dollars.
The registered capital of the joint venture, to be renamed 999 Pharmaceutical Co, will be expanded from 608.5 million yuan to 1.46 billion yuan.
It plans to expand its existing business in research and development, manufacturing, marketing and trading in medical balls, pills, powders, capsules and other pharmaceutical products, health-care and related products, which may include stomach and otherChinese and Eastern medicines.