Shimao property service unit to raise $625 mln through bonds, share sale

Shimao Services Holdings

20/10/2021 02:15

HONG KONG, Oct 20 (Reuters) - Shimao Services Holdings Ltd
 0873.HK  said on Wednesday it planned to raise HK$4.86 billion
($625 million) by issuing convertible bonds and selling shares
for potential mergers and acquisitions, business expansion and
working capital.
    The property management service unit of Chinese property
developer Shimao Group Holdings Ltd  0813.HK  proposed to issue
HK$3.11 billion worth of convertible bonds with maturity on Oct.
31, 2022, it said in a filing to the Hong Kong bourse. 
    The bonds, carrying an interest of 2.25% per annum, are
convertible into 170.691 million new shares at HK$18.22 each,
representing a 8.32% premium to Tuesday's close of HK$16.82. 
    Shimao Services also planned to issue 115 million new shares
to its major shareholder Shimao Group at HK$15.18 apiece, or a
9.75% discount to Tuesday's close, raising HK$1.75 billion.
    The major shareholder will buy the new shares on completion
of sale of same amount of existing shares at the same price to
not less than six third party investors, it added. 

($1 = 7.7760 Hong Kong dollars)

 (Reporting by Donny Kwok; Editing by Rashmi Aich)
 ((donny.kwok@thomsonreuters.com; +852 2843 6470;))