Company raises RMB 482 million to strengthen production capacity and market share for PET beverage packaging business
Enhances Zhuhai Zhongfu's core profitability
ZHUHAI, China and HONG KONG, Dec. 23, 2010 /PRNewswire-Asia/ -- China's leading beverage packaging and PET bottling company, Zhuhai Zhongfu Enterprise Holdings Limited ("Zhuhai Zhongfu"; stock code: SZ000659), today announced its private placement was 2.7 times oversubscribed and that it will issue 68 million new shares at RMB 7.1 per share, raising RMB 482 million. The net proceeds will be fully committed to the expansion program for the Company's core businesses, namely PET bottle manufacturing, bottle blowing and drink refilling.
Zhuhai Zhongfu said it anticipates its profitability, production and marketing capability will be further enhanced once the new facilities are integrated into its operations. The Company intends to leverage the expansion to capitalise on the booming beverage packaging industry in China as well as the expansion plans of its major customers.
The overwhelming response the private placement received from investors was reflected in the bidding process. Zhuhai Zhongfu received subscriptions from a total of 22 financial institutions, including public funds, private equity funds, insurance funds and social security funds, as well as individual investors. The bidding price ranged from RMB 5.64 - 7.77 per share, and ultimately the private placement was awarded to seven investors. Zhuhai Zhongfu emphasised that this private placement will not result in significant changes towards the shareholding structure, although the interest of the controlling shareholder, Asia Bottles (HK) Company Limited, will decrease from 29% to 26.39%.
Mr. Gary Guernier, Chairman of Zhuhai Zhongfu, said, "We're heartened by the positive response from investors. This validates Zhuhai Zhongfu's remarkable business prospects in the rapidly growing PET beverage packaging and soft drinks consumption market in China, and it demonstrates investors' strong confidence in our unique business model and management support.
"Given the rapid growth of China's beverage consumption and volume -- in particular soft drinks such as carbonated drinks, bottled water, tea drinks and juices -- we will strive to capture opportunities and meet the development pace of our major customers in China. We will do this by enhancing our operational scale and R&D capabilities, as well as strengthening our competitive edge and profitability in the industry."
In addition to this private placement, Zhuhai Zhongfu has further facilitated its development plans via internal resources. The Company recently established a bottling plant with COFCO Coca-Cola Beverages Ltd. in Inner Mongolia, which has an annual capacity of 150 million standard bottles.
About Zhuhai Zhongfu Enterprise Holdings Limited
Zhuhai Zhongfu Enterprise Holdings Limited ("Zhuhai Zhongfu"; stock code: SZ000659) was established in 1982. It is principally engaged in the production and marketing of PET bottling, PVC and OPP labelling, and drink refilling. Zhuhai Zhongfu is one of the largest PET bottle manufacturers in China, and the first company supplying PET bottles to Coca-Cola in China. The company has over 80 production facilities and an annual production capacity of over 5.5 billion. Its products include PET bottles for carbonated soft drinks, drinking water and beer. It has received various honours and awards at the national and provincial level. The company was listed on the Shenzhen Stock Exchange (Main Board) in 1996, the first entity in China's beverage packaging industry to be listed. For more details, please visit the company's website: http://www.zhongfu.com.cn。
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GolinHarris
Madison Wai
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Email: madison.wai@golinharris.com
