COUNTRY REPORT HONG KONGshareholder China Southern Air Holding
(CSAH).
China Southern also aims to sell up
to 1.8bn A-shares to raise as much as
Rmb9.5bn. CSAH has agreed to subscribe
to at least 31% of the placement shares,
through an asset swap and cash. The
A-share transaction is still awaiting
regulatory approval.
Proceeds will be used mainly to purchase
aircraft and meet working capital needs.
UBS Securities is lead on the placement.
› COMPLETION OF WUXI PLACEMENT
A share placement in Hong Kong-listed WUXI
BIOLOGICS has raised HK$4.69bn.
WuXi Biologics raised HK$3.99bn from
the sale of 57m shares to no less than six
investors, while shareholder G&C VII took
in HK$700m from the sale of 10m shares.
The placement price was set at HK$70,
the upper half of the indicative range of
HK$68.50-$71.00, representing a discount of
6.7% to the pre-deal spot.
The placement was multiple times
covered with a good quality book. There
were more than 100 lines in the book and
the top 10 investors took about two-thirds
of the allocation.
There is a three-month lock-up on the
company, the vendor and WuXi Biologics
Holdings.
The company will use the proceeds to
fund expansion.
Morgan Stanley was the sole bookrunner.
G&C VII is a controlling shareholder
of WuXi Biologics. It is a wholly owned
subsidiary of New WuXi ESOP LP, the
general partner under the direct control of
WuXi Biologics chairman Dr Ge Li.
› COGARD UNIT TO LIST BY INTRODUCTION
COUNTRY GARDEN HOLDINGS, which withdrew
a planned Shanghai listing of its property
management arm last December, will now
list the unit in Hong Kong without raising
any funds.
The Chinese property company initially
planned to raise about Rmb1.13bn from the
A-share plan, but withdrew its application
due to a regulatory change in the review
process of such transactions in China. It did
not give details of the policy change.
Country Garden last week said it would
list COUNTRY GARDEN SERVICES by introduction
through the distribution of CGS shares to
the parent’s shareholders. No funds will be
raised.
› NOTHING ASSURED FROM PING AN
PING AN INSURANCE (GROUP) will not provide an
assured entitlement to any shareholder for
its proposed spin-off and separate Hong
Kong listing of Ping An Healthcare and
Technology.
This is because A-shareholders voted
against a provision that would have given
assured entitlements to H-shareholders for
the proposed IPO.
The Chinese insurer intends to raise
about US$1bn from a Hong Kong IPO as
early as the first half of this year, people
close to the deal told IFR earlier.
Ping An Healthcare, formerly known as
Ping An Good Doctor, is the largest online
healthcare and medical destination in
China in terms of the number of users.
Citigroup and JP Morgan are joint sponsors.
Following the transaction, Ping An
Insurance will remain a controlling
shareholder of Ping An Healthcare.› HUATAI GETS PLACEMENT APPROVALChinese brokerage HUATAI SECURITIES, also
known as HTSC, has received written
approval from the China Securities
Regulatory Commission for a proposed
private placement of A-shares to raise up to
Rmb25.51bn.
Huatai intends to place up to 1.09bn
A-shares to not more than 10 investors at
a floor price to be set on the first day of
issuance.
Guotai Junan Securities and Huatai United
Securities are joint sponsors. The company
will use the proceeds to strengthen its
capital.
ANTONG HOLDINGS, formerly Heilongjiang
Heihua, has secured board approval for a
proposed private share placement of up to
Rmb3.43bn.
The provider of freight transportation
services plans to offer not more than 212m
shares at a floor price to be set on the
first day of issuance. Proceeds will be used
for logistics projects. Haitong Securities is
working on the transaction. Shareholders
will review the proposal on April 9.
DO-FLUORIDE CHEMICALS has received written
CSRC approval for a proposed private share
placement of up to Rmb1.70bn.
The producer of inorganic fluoride
products plans to offer not more than 126m
shares at a floor price to be set on the first
day of issuance. Everbright Securities is the
sole bookrunner. Proceeds will be used for
a lithium battery project and a new energy
vehicle project.› SHENZHEN NEPTUNUS TO SELL RIGHTSSHENZHEN NEPTUNUS BIOENGINEERING has secured
board approval for a proposed rights issue
of up to Rmb5bn.
The manufacturer and distributor of
pharmaceutical products plans to offer upto 794m right shares on a 3-for-10 basis.
China Galaxy Securities is the sole
bookrunner. Proceeds will be used to repay
debts and replenish working capital.
Shareholders will review the proposal on
April 4.
SHENZHEN WENKE LANDSCAPE has launched a
rights issue of up to Rmb851m, with Zhong
De Securities as the sole bookrunner.
Bookbuilding will start on Monday.
The company plans to offer up to 74m
rights shares on a 3-for-10 basis. The price
has been set at Rmb11.50, or at a discount
of 39.1% to the March 20 close of Rmb18.87.
Proceeds will be used for construction
projects, research and development, and
working capital.› CB APPROVAL FOR AVIC ELECTROAVIC ELECTROMECHANICAL SYSTEMS has cleared a
China Securities Regulatory Commission
hearing for a proposed issuance of six-year
convertible bonds of up to Rmb2.1bn.
The company plans to use the proceeds
for acquisitions and expansion. Guotai
Junan Securities and AVIC Securities are joint
bookrunners.
The issuance still needs written CSRC
approval.
LONCIN HOLDING has applied to the Shanghai
Stock Exchange for a private placement
of three-year exchangeable bonds of up
to Rmb3bn with shares of LONCIN MOTOR as
underlying.
Loncin Holding holds 1.04bn Loncin
Motor shares, or 49.32% of the company’s
issued capital.
First Capital Investment Banking is the sole
bookrunner.
Shanghai-listed Loncin Motor mainly
manufactures various kinds of machineries.
TAIYUAN IRON & STEEL has proposed a private
placement of EBs of up to Rmb1.5bn with
shares of SHANXI SECURITIES as underlying.
Taiyuan Steel holds 283m Shanxi
Securities shares, or 9.99% of the company’s
issued capital.
The placement still needs regulatory
approval.HONG KONG
SYNDICATED LOANS
› TRIMCO LOAN INTO SYNDICATIONA US$255m five-year amortising loan to
back Affinity Equity Partners’ purchase of
a majority stake in garment label-maker
TRIMCO INTERNATIONAL HOLDINGS has been