By Prudence Ho and Joanne Chiu
China Culiangwang Beverages Holdings Ltd. (0904.HK) is seeking
to raise in a rights issue up to 1.06 billion Hong Kong dollars
(US$137 million) in a bid to strengthen its capital and reduce
debt.
The Hong Kong-listed company said Friday it plans to sell up to
5.30 billion new shares at a price of HK$0.2 each to its existing
shareholders, on the basis of two offer shares for every one share
held. The offer price represents a 78% discount to its latest
trading price of HK$0.90 Wednesday, it added.
The fundraising comes as a plan by the company to sell its
beverage business to a unit of Coca-Cola Co. (KO) for an enterprise
value of US$400.5 million, as it seeks to refocus on nonbeverage
consumer operations.
China Everbright Securities (HK) Ltd., Oriental Patron
Securities Ltd. and SBI China Capital Financial Services Ltd. are
underwriters of the deal.
Write to Joanne Chiu at joanne.chiu@wsj.com
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