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Jinmao in placement and subscription agreement
Posted on Tuesday, 07 July 2020 04:34
China Jinmao Holdings Group has entered into a placing and subscription that will broaden its investor base while reflecting the commitment of its controlling shareholder towards its long-term strategy. The Hong Kong-incorporated, large-scale city property, retail and hotel operator is a platform enterprise under the real estate and hotel segments of Sinochem Group, one of the world’s top 500 enterprises. It generated revenue of CNY 43.36 billion (USD 6.13 billion) in the financial year ended 31st December 2019, up from CNY 38.73 billion in FY 2018. Jinmao posted net profit attributable to shareholders of CNY 6.11 billion for the 12 months, compared to 5.08 billion in FY 2018. The group had a net debt to adjusted capital ratio of 74.0 per cent at year-end. Jinmao is planning to raise HKD 3.43 billion (USD 442.99 million) by placing out 602.34 million new shares to no less than six independent investors in order to fund expansion and growth. The price of HKD 5.70 apiece equates to a discount of 6.6 per cent to HKD 6.10 on 3rd July, the last close prior to the announcement. Jinmao has also entered into a subscription agreement Sinochem Hong Kong, which is a subsidiary of Sinochem and the group’s immediate controlling shareholder. The existing investor is buying 349.45 million new shares, representing a 2.7 per cent post-issue and -placing stake, for HKD 2.00 billion. Following the equity dilution and concurrent subscription, Sinochem Hong Kong’s 35.0 per cent interest will increase to 35.2 per cent. Jinmao intends to use proceeds from the two issues for land bidding, debt repayment and general working capital. The placing and subscription announcement comes just several days after the company obtained consent to extend the deadline for despatching a scheme document to take over Jinmao China Hotel Investments and Management from 3rd July to 17th August. © Zephus Ltd