HK's Shimao Services drops most in 4 weeks on discounted share sale, bonds issue

Shimao Services Holdings

20/10/2021 02:59

** Shares of Shimao Services Holdings Ltd  0873.HK  drop
13.1% to HK$14.62 - biggest daily pct decline since Sept. 20; on
course to snap two consecutive sessions of gains
    ** Stock hit lowest since Sept. 28 - biggest pct decliner on
Hong Kong bourse and on Hang Seng Composite Index tracking
properties and construction stocks  .HSCIPC  
    ** Property management service unit of Chinese property
developer Shimao Group Holdings  0813.HK  plans to raise HK$4.86
bln ($625 mln) by issuing convertible bonds and selling shares
for potential mergers and acquisitions, business expansion and
working capital  urn:newsml:reuters.com:*:nL1N2RG018
    ** Says HK$3.11 bln worth of bonds, carrying an interest of
2.25% per annum, are convertible into 170.691 mln new shares 
    ** Shimao Services also plans sale of 115 mln new shares to
its major shareholder at HK$15.18 apiece, or a 9.75% discount to
Tuesday's close, raising HK$1.75 bln
    ** Shares of Shimao Group slip as much as 1.1% 
    ** The Hong Kong Hang Seng sub-index tracking property firms
 .HSNP  eases 0.5%, and the Hang Seng Composite Index tracking
properties and construction stocks  .HSCIPC  slips 0.7%
    ** The Hang Seng China Enterprises Index  .HSCE  climbs
0.7%and the benchmark index  .HSI  gains 0.6%


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