Hong Kong-listed Modern Land (China) Co Ltd, a real estate developer of green technological properties, has entered into a subscription agreement with China Cinda (HK) Asset Management Co Ltd, making it the second largest shareholder of Modern Land.
With the cooperation, Modern Land will replenish its capital base, integrate resources from property and financial business and upgrade market competitiveness. China Cinda (HK) Asset Management is a wholly-owned subsidiary of China Cinda Asset Management Co.
According to the Subscription Agreement, China Cinda (HK) Asset Management Co., Limited has conditionally agreed to subscribe for and Modern Land has conditionally agreed to allot and issue a total of 243,525,000 Subscription Shares at the Subscription Price of HK$ 1.10 per share, at a total consideration of HK$ 267,877,500 which will be payable in cash by China Cinda (HK) Asset Management Co., Limited.
The number of Subscription Shares represents approximately 10.78% of the existing issued share capital of the Company as at the date of this announcement and approximately 9.73% of the total enlarged issued share capital of the Company immediately following completion of the Subscription. The Company intends to utilise the net proceeds from the Subscription for general working capital of the Group.
The Subscription Price of HK$1.10 represents a premium of approximately 5.77% to the closing price of HK$1.04 per Share on 3 November 2016; and a premium of approximately 1.29% to the average of the closing prices of HK$1.086 per Share for the last five consecutive trading days immediately prior to 3 November 2016.
China Cinda (HK) Asset Management Co., Limited is a company incorporated in Hong Kong with limited liability and is a wholly-owned subsidiary of China Cinda. It is principally engaged in asset management, investment and financing businesses, non-performing assets acquisition and disposal, cross-border financial services and industrial investment, asset management entrustment business, investment in property and related sectors, debt-equity swap, mergers and acquisitions and asset restructuring businesses.
The Chairman of the Board of Modern Land, Mr. Zhang Lei, said: “As a property developer focused on development of green, energy-saving and eco-friendly residences, Modern Land has been continually seeking for appropriate and competitive partners to promote our market influence. We highly welcome China Cinda (HK) Asset Management Co., Limited to become our second largest shareholder. China Cinda (HK) Asset Management Co., Limited possess distinguished competence, which would inject new force for business development and finance activities of the Group. Currently, the two parties have been conducting negotiation on potential cooperation in multi sectors.”
The Executive Director and President of Modern Land, Mr. Zhang Peng, said: “There is no doubt that the partnership we entered this time indicates that Modern Land’s successful business and development blueprints are acknowledged by China Cinda (HK) Asset Management Co., Limited. China Cinda (HK) Asset Management Co., Limited’s parent company, China Cinda maintains a diversified business layout. We anticipate the two parties can vigorously create synergy with each other to enlarge business scope in the future.” – BusinessNewsAsia.com