China Real Estate Enterprise Country Garden announced that 351 million new shares will be issued, and the total price of the subscription shares will be HK $ 270 million (about $ 47 million). This funds will be used to offset the company's arrears.
Country Garden issued an announcement on the Hong Kong Stock Exchange on Wednesday (August 30) that the company entered into a subscription agreement with subscribers and will issue 351 million new shares.On the 29th, the market price of HK $ 0.91 per share was about 15.38%.
Announcement disclosed that the subscriber is a limited company registered in accordance with Hong Kong legislation and is wholly -owned by Jiantao Group.The financing agreement owes part of the purchase.
In other words, the issuance of new shares is equivalent to "debt -to -equity swaps", and the subscribers convert some of the creditor's claims held by Country Garden into shares.
The Director of Country Garden believes that the subscription will enable the company's capitalized part of the payment amount and minimize cash outflows. Therefore, the group's cash resources and the level of capital liabilities will be reserved.Essence
After the subscription matters are completed, Country Garden will be repaid at HK $ 1.598 billion according to the financing agreement, and it will be repaid in installments in installments.
But the announcement also reminded that the subscription matters must be reached to the prerequisite conditions contained in the subscription agreement, including the claim that the Stock Exchange approves the subscription of shares to be listed and traded.Since the subscription matters may not be completed, shareholders and investors should do it with prudential affairs at the time of buying and selling securities.
Country Garden's refinancing action is justified, coincided with the policy of continuous loosening of listed housing companies' re -financing.On August 27th, the China Securities Regulatory Commission issued a series of favorable policies for the capital market. Among them, it proposed that the real estate listed company re -financing was not broken, net and losing restrictions.
Country Garden also issued an announcement on August 25 that 26.67%equity of the Guangzhou Asian Games project owned by the Guangzhou Asian Games project was sold to China Sea, with a total cost of about 1.29 billion yuan (about S $ 239 million).The pre -tax income was about 500 million yuan.The items of the sale items are currently planned to be used in the construction expenditure of project construction and other projects, and this is regarded by the market as a major action for Country Garden to save self -rescue.
In addition, in order to stabilize the principal and interest of the current bond, Country Garden launched a second bond holder meeting on "16 Biyuan 05" on Tuesday (29th).The Securities Times quoted people close to Country Garden that, given that the holders of the bond are institutional investors, they need to reserve a more abundant time for internal communication, discussion, decision -making, and printing materials for voting materials.
Country Garden therefore proposes a motion on increasing the 40 natural day width period, and the bond holder agrees to give it to the principal and interest of the "16 Biyuan 05" that will expire on September 2nd.The company's 40 natural daily limits are limited.
