SHENZHEN, China, Oct. 5,
2020 /PRNewswire/ -- Nam Tai Property Inc. ("Nam Tai" or the "Company") (NYSE Symbol: NTP)
today announced that it has completed a private placement of its
common shares (a "private investment in public equity," or "PIPE")
with investors Kaisa Group Holdings Ltd. ("Kaisa") and a
large-scale integrated financial group based in Hong Kong. Nam
Tai will receive gross proceeds of approximately
$170 million, which it expects to use
to pay down debt that is at risk for cancellation or early
repayment demands and increase its financial flexibility.
Recently, Nam Tai's lending banks
have notified Nam Tai that
substantial uncertainties may be cast upon the Company's operations
and management control in light of recent actions taken by IsZo
Capital Management LP ("IsZo"). In fact, it is difficult for small
real estate companies such as Nam
Tai to obtain bank financing in China. If Nam
Tai's Board of Directors were to lose its relationship with
Kaisa, which would be the case if IsZo's majority slate of nominees
were elected to the Board, the Company would run the risk of loans
being canceled, consequently leading to significant liquidity
issues with its operating and construction works. Furthermore, the
requisition notice and further actions related to a potential
change in control pursued by IsZo could trigger an early repayment
of outstanding loans demanded by the banks under relevant loan
covenants.
"After thoughtful deliberation by the Board working with
management and the Board's external financial advisor, we are
pleased to announce this investment by two strategic, well
capitalized and long-term shareholders who recognize the value
creation potential of Nam Tai," said
Dr. Lai Ling Tam, Executive Chairman
of the Board of Directors. "As we navigate the current economic
environment, the proceeds from this transaction will significantly
enhance our financial flexibility and mitigate meaningful risks to
our financial stability."
Dr. Tam added, "Over the past several quarters, the Board and
management team have made significant strides on our strategy to
build Nam Tai into a leading
operator of industrial ecosystems in China. IsZo's campaign has disrupted our
progress, and its statements against the Company and meeting
requisition have triggered this significant new risk to our
financial stability. Once the Company resolves its on-going matters
with IsZo, it anticipates utilizing a portion of the proceeds from
this transaction to advance its property development strategy,
including the expansion of its portfolio of assets and strategic
development opportunities in the Guangdong-Hong Kong-Macao Greater Bay Area,
and deliver value to all shareholders."
Kaisa is a large, diversified investment group in China that is listed on the main board of the
Hong Kong Stock Exchange (the "HKEX") with a market cap exceeding
$3.1 billion and a long track record
of success. Kaisa has competitive advantages in real estate
development and urban renewal, among others. In the field of urban
renewal, Kaisa is constantly regarded as one of the national
leaders, with 167 urban renewal projects as of June 30, 2020 covering a site area of nearly 42
million square meters, the majority of which are in Guangzhou and Shenzhen. Notably, Kaisa is one of the top
developers in Shenzhen, the key
market for Nam Tai, and in 2019,
contracted sales attributable to Kaisa reached approximately
$12.9 billion.
As large and long-term oriented shareholders, Kaisa's and the
other investor's interests are aligned with all Nam Tai shareholders.
As part of the private placement, Kaisa and the other investor
received 16,051,219 and 2,603,366 of Nam
Tai common shares, respectively, for $9.15 per share.
Houlihan Lokey served as
financial advisor, and Latham & Watkins LLP and Walkers served
as legal advisors to the Company.
Forward-looking Statement and Factors that Could Cause our
Share Price to Decline
Certain statements included in this press release, other than
statements of historical fact, are forward-looking statements.
Forward-looking statements generally can be identified by the use
of forward-looking terminology such as "may", "might", "can",
"could", "will", "would", "anticipate", "believe", "continue",
"estimate", "expect", "forecast", "intend", "plan", "seek", or
"timetable". These forward-looking statements, which are subject to
risks, uncertainties, and assumptions, may include projections of
our future financial performance based on our growth strategies and
anticipated trends in our business and the industry in which we
operate. These statements are only predictions based on our current
expectations about future events. There are several factors, many
beyond our control, which could cause results to differ materially
from our expectation. These risk factors are described in our
Annual Report on Form 20-F and in our Current Reports filed on Form
6-K from time to time and are incorporated herein by reference. Any
of these factors could, by itself, or together with one or more
other factors, adversely affect our business, results of operations
or financial condition. There may also be other factors currently
unknown to us, or have not been described by us, that could cause
our results to differ from our expectations. Although we believe
the expectations reflected in the forward-looking statements are
reasonable, we cannot guarantee future results, levels of activity,
performance, or achievements. You should not rely upon
forward-looking statements as predictions of future events. These
forward-looking statements apply only as of the date of this
announcement; as such, they should not be unduly relied upon as
circumstances change. Except as required by law, we are not
obligated, and we undertake no obligation, to release publicly any
revisions to these forward-looking statements that might reflect
events or circumstance occurring after the date of this press
release or those that might reflect the occurrence of unanticipated
events.
ABOUT NAM TAI PROPERTY INC.
We are a real estate developer and operator, mainly conducting
business in Mainland China. Our main land resources are located in
the Guangdong-Hong Kong-Macao
Greater Bay Area ("Greater Bay Area") and Wuxi, China, of which the three plots in
Shenzhen will be developed into
Nam Tai Inno Park, Nam Tai Technology Center and Nam Tai Inno Valley. We plan to build these
technology parks into landmark parks in the region and provide
high-quality industrial offices, industrial service spaces and
supporting dormitories to the tenants. Based on the experience of
developing and operating technology parks and an industrial
relationship network accumulated over the past 40 years, we have
also exported the operation model of technology parks to other
industrial properties. Through an asset-light model, we have leased
industrial properties for repositioning and business invitation. We
will also expand the commercial and residential property business
in China as an auxiliary
development strategy of the Company. As the growth prospects of
China maintain, we shall seize
development opportunities in the Greater Bay Area and other first-
and second-tier cities in China,
and continue to strengthen and expand the business of industrial
real estate, and commercial and residential properties. Nam Tai
Property Inc. is a corporation registered in the British Virgin Islands and listed on the New
York Stock Exchange (Symbol: "NTP"). Please refer to our corporate
website (www.namtai.com) or the SEC website (www.sec.gov) for our
press releases and financial statements.
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SOURCE Nam Tai Property Inc.