HNA’s listed arm proposes HK$9.26b rights issue to fund Kai Tak land purchases
Money raised will fund the purchase of two plots of land on Hong Kong’s former airport site
Hong Kong International Construction Investment Management Group, a listed unit of HNA Group, has proposed a two-for-one rights issue to raise about HK$9.26 billion to fund the acquisition of two land sites at Kai Tak that it bought over the past two months .
The company said it would issue about 2.27 billion rights shares at HK$4.08 each. The price represents a 0.99 per cent premium to the company’s closing price of HK$4.04 on Tuesday, according to the filings to the Hong Kong exchange on Wednesday.
HNA Finance I, a wholly owned subsidiary of the HNA Group and the controlling shareholder with 66.64 per cent of the existing issued shares, has irrevocably undertaken to subscribe to the rights shares.
Assuming no shareholders other than HNA subscribe to the shares, HNA Finance’s holding in the company will increase to 75 per cent.
Hong Kong International Construction said the money raised will be partly used to fund the acquisition of two parcels of land at Kai Tak, former site of the city’s airport, that were purchased for HK$12.97 billion through government tenders in the past two months.