Top up Placement Completed
HONG KONG, Aug. 7 /Xinhua-PRNewswire-FirstCall/ -- HKC (Holdings) Limited ("HKC (HOLDINGS)" or the "Group") (SEHK: 190) announced today that The Bank of East Asia ("BEA") has fully discharged and released the share pledge by Mr. Eric Oei, the controlling shareholder of the Group ("Mr. Oei"), for certain banking facilities of US$150,000,000. The Share Pledge was made by Mr. Oei to secure banking facilities from BEA, of which the proceeds were on-lent by Mr. Oei to HKC (HOLDINGS) to facilitate its submission of tender for certain sites in the PRC.
Meanwhile, to ensure compliance with the listing rules in Hong Kong, the Group completed a HK$1.26 billion top up placement on 1 August to maintain free float of shares. Upon completion of the subscription agreements with Cerberus Asia Capital Management, LLC or its affiliates ("Cerberus"), Penta Investment Advisers Ltd. ("Penta") and Creator Holdings Limited ("Creator") as disclosed in the announcement dated 18 July 2007, it is anticipated that the Group's free float will drop below 25%. Hence, the Group's controlling shareholder sold 450 million shares at HK$2.80 per share and subscribed for the same number of shares at the same price with the objective of resolving the free float issue upon the completion of subscriptions by Creator, Cerberus and Penta.
Mr. Eric Oei said, "We are pleased that the placement was well received by institutional investors who have confidence in the long term prospects of the Group. The book was covered in one and a half hours, and the shares were 2.5 times subscribed despite the very volatile market in recent weeks. This placement has not only allowed us to maintain the required free float of the shares, but has also given us additional funds for supporting acquisitions in the PRC. In a strengthened financial position, the Group is poised to capture the vast potential in the PRC market."
About HKC (Holdings) Limited (stock code: 190)
HKC (Holdings) Limited is principally engaged in property development and investment activities with a primary focus in the PRC. It is also one of the leading providers of alternative energy in the PRC.
For more information, please visit the Group's website: http://www.hkcholdings.com .
For media enquiries:
Strategic Financial Relations Limited
Esther Chan / Vicky Lee / Daphne Chan
Tel: +852-2864-4825 / +852-2864-4834 / +852-2864-4817
Email: esther.chan@sprg.com.hk / vicky.lee@sprg.com.hk /
daphne.chan@sprg.com.hk
