Xiaomi seeks up to $4 billion in equity deals- term sheet (updated)

Eco Volt Co

01/12/2020 11:28

(Adds deal details)
    By Scott Murdoch
    HONG KONG, Dec 1 (Reuters) - Chinese smartphone maker Xiaomi
Corp 1810.HK  is aiming to raise up to $4 billion in an equity
and convertible bond deal launched in Hong Kong on Tuesday,
according to a term sheet seen by Reuters.
    The company is selling 1 billion shares in a top-up
transaction priced between HK$23.70 and HK$24.50, the term sheet
showed.
    The range is a 6.3% to 9.4% discount to Xiaomi's closing
price of HK$26.15 on Tuesday.
    Xiaomi's biggest shareholder, Smart Mobile Holdings Ltd,
which owns about 27% of the company and is connected to chairman
Lei Jun, according to the term sheet, is the selling Class B
type shares.
    A convertible bond deal to raise $855 million is also
underway, according to the term sheet.
    Final pricing of the share issuance will take place Tuesday
following a global institutional bookbuild.
    Xiaomi reported a 19% jump in third-quarter net profit on
Nov. 24, as the Chinese smartphone maker’s shipments over the
quarter surged by 45.3% from a year earlier.  urn:newsml:reuters.com:*:nL1N2IA0O8
    The company said it had taken market share in China and
Europe as its rival Huawei Technologies  HWT.UL  faced U.S.
sanctions that have hit its supply chain.
    Xiaomi did not immediately respond to a request for comment.

 (Reporting by Scott Murdoch; editing by Andrew Heavens and
Louise Heavens)
 ((Scott.Murdoch@thomsonreuters.com;))