Developer Sunac China plans $580 mln share sale to repay loans (updated)

Sunac Services Holdings

13/01/2022 07:43

(Adds source comment, share move)
    HONG KONG, Jan 13 (Reuters) - Chinese property developer
Sunac China Holdings Ltd  1918.HK  said on Thursday it planned
to raise HK$4.52 billion ($580.09 million) from a share sale for
repayment of loans and general corporate purposes.
    The Hong Kong-listed developer plans to sell 452 million new
shares, or 8.3% of the enlarged share capital, to controlling
shareholder Sunac International Investment Holdings, it said in
a filing to the Hong Kong bourse.
    The new shares will be issued at HK$10 apiece, representing
a 15.3% discount to Wednesday's closing price of HK$11.80 each. 
    Shares of Sunac tumbled 22% in afternoon trade to HK$9.2,
versus a 0.2% decline in the broader market  .HSI 
    A source close to Sunac told Reuters the company has no more
plan in the near term to place its shares or shares in unit
Sunac Services  1516.HK  to raise capital, adding it has
sufficient funds to meet debt payment obligations due in the
short term and for project development.
    Sunac China did not immediately respond to a request for
comment.
    Sunac last issued new shares and sold a stake in Sunac
Services in November to raise a total of $948 million.
 urn:newsml:reuters.com:*:nL1N2S602K     
    Sunac Services told investors on Tuesday it also had no
share placement plan nor new connected-party transactions
scheduled and it would resume share buybacks, according to a
report by brokerage Jefferies.
    In the latest share placement, the controlling shareholder
will buy the new shares after selling the same amount of
existing shares at the same price to third-party investors.
    Morgan Stanley & Co. International plc is the placing agent.
($1 = 7.7919 Hong Kong dollars)

 (Reporting by Donny Kwok and Clare Jim; Editing by Muralikumar
Anantharaman)
 ((donny.kwok@thomsonreuters.com; +852 3462 7745;))