Chinese sports group Xtep sprints to record high on bond issue plan

Xtep International Holdings

15/06/2021 03:46

** Shares of Chinese sportswear group Xtep International
Holdings  1368.HK  rise 30.4% to HK$11.58, their highest since
listing in June 2008, and on course for their best day ever
    ** Stock third-biggest percentage gainer on the Hong Kong
bourse and the ninth most actively traded by turnover 
    ** Co plans to issue HK$500 mln ($64.4 mln) bonds
convertible into 2.03% of its enlarged share capital to GSUM IV
Holdings, to refinance debts and for working capital
 urn:newsml:reuters.com:*:nFWN2NW105
    ** Hillhouse Capital Management is the investment manager of
GSUM IV 
    ** Xtep says the bonds are convertible into 54.36 mln shares
at HK$10.244 each, a 15.4% premium to Friday's close 
    ** Board believes Hillhouse's deep vertical knowledge in the
consumer service sectors and extensive online capabilities and
offline networks will bring about the innovative element to
Xtep's business operations - Chairman Ding Shui Po
    ** Xtep says unit Xtep Global will issue $65 mln bonds to
GSUM VII Holdings convertible into 20% of the share capital of
the unit  urn:newsml:reuters.com:*:nFWN2NW0TT 
    ** The unit holds sportswear brands K-Swiss and Palladium 
    ** The Hang Seng China enterprises index  .HSCE  falls 1.5%,
and the benchmark index  .HSI  slips 1.1%
    ** As of last close, the stock had soared 129.5% this year 
($1 = 7.7617 Hong Kong dollars)

 (Reuters Messaging: donny.kwok.thomsonreuters.com@reuters.net)