Developer Sunac China plans to sell $ 580million shares to repay loans

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The logo of Sunac China Holdings Ltd is seen at an exhibition in Hangzhou, Zhejiang province, China on May 25, 2015. Photo taken on May 25, 2015. China Daily / via REUTERS

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HONG KONG, Jan. 13 (Reuters) – Chinese real estate developer Sunac China Holdings Ltd (1918.HK) announced on Thursday that it plans to raise 4.52 billion Hong Kong dollars ($ 580.09 million) from a sale of shares for loan repayment 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, he said in a filing on the Hong Stock Exchange. Kong.

The new shares will be issued at HK $ 10 each, which is a 15.3% discount from Wednesday’s closing price of HK $ 11.80 each.

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Sunac shares fell 22% in afternoon trading to HK $ 9.2, compared to a 0.2% drop in the broad market (.HSI)

A source close to Sunac told Reuters that the company no longer intends in the short term to place its stock or shares in the Sunac Services unit (1516.HK) to raise capital, adding that it has sufficient funds to meet short-term debt payment obligations. term and for the development of the project.

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.

Sunac Services told investors on Tuesday that it also had no stock placement plan or new related party transactions and would resume share buybacks, according to a brokerage report. Jefferies.

In the last share placement, the controlling shareholder will buy the new shares after having sold the same number of existing shares at the same price to third-party investors.

Morgan Stanley & Co. International plc is the placement agent.

($ 1 = 7.7919 Hong Kong dollars)

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Reporting by Donny Kwok and Clare Jim; Editing by Muralikumar Anantharaman

Our standards: Thomson Reuters Trust Principles.

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