Sino-Ocean sells shares to raise funds

By Marc Castro

Sep 27, 2013 03:05 PM EDT

One of the largest real estate developers in China, had said it would be raising USD808 million through the sale of new shares. The buyers would be China Life Insurance Co and the Nan Fung Group with the proceeds of the sale going to the funding for the purchase o fnew property projects.

China Life would be purchasing 635.9 million shares while Nan Fung would be getting 686.5 million shares. Each share for both purchases would be worth HKD4.74, according to a statement submitted by Sino-Ocean with the Hong Kong Stock Exchange. The set price includes a 1.7% premium with the Hong Kong closing price of HKD4.66 per share.

The sale increases the shareholdings of China Life from 24.7% to 29% according to the same documents filed. Under current Hong Kong rules, the insurer is required to make a buyout offer once shareholdings reach 30%. For Nan Fung's part, the shareholdings also increase from 14% to 21%. The statement from Sino-Ocean also confirmed that both parties would not make a takeover offer.

The transaction would require payment by Sino-Ocean Land to Nan-Fung for 20% stake worth USD314 million in a commercial development in the Chaoyang District in Beijing as well as a 10% stake in a residential and retail complex in Dalian. For all of its transactions, JP Morgan was adviser to Sino-Ocean.

© 2024 VCPOST, All rights reserved. Do not reproduce without permission.

Join the Conversation

Real Time Analytics