China Nonferrous Mining drops on discounted share sale

China Nonferrous Mining

09/04/2024 04:39

** Shares of China Nonferrous Mining Corp  1258.HK  fall
12.4% to HK$6.08, on track for worst day since March 2020
    ** Stock hits lowest level since March 28; biggest pct loser
in Hang Seng Composite Index  .HSCI 
    ** Co plans sale of 163 mln new shares to controlling
shareholder China Nonferrous Mining Development, raising HK$978
mln ($124.9 mln) to increase production capacity, fund
acquisition of mineral resources and replenish working capital
    ** Shares will be issued at HK$6 apiece, representing 13.5%
discount to stock's Monday close of HK$6.94
    ** Controlling shareholder will buy the new shares following
sales of the same number of existing shares at the same price to
third party investors, reducing its stake in the company to
66.63% on completion of the deal from 69.54%
    ** Hang Seng Composite Index  .HSCI  and Hang Seng Index
 .HSI  both climb 0.7%
    ** Stock up 20.3% YTD

($1 = 7.8304 Hong Kong dollars)

 (Reporting by Donny Kwok)
 ((donny.kwok@thomsonreuters.com))