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China Resources Land plans $968 mln rights issue to buy assets from parent
December 8, 2014 / 12:57 PM / 3 years ago

China Resources Land plans $968 mln rights issue to buy assets from parent

HONG KONG, Dec 8 (Reuters) - China Resources Land said it planned to raise up to HK$7.5 billion ($968 million) via a rights issue to fund part of the acquisition of interests in five projects from its parent company for 14.8 billion yuan ($2.4 billion).

The state-owned Chinese developer, whose parent company is China Resources Holding, said in a statement on Monday the total consideration represented a 35.7 percent discount to net asset value.

The company plans to issue 415.3 million shares at HK$18.0104 per share, 0.8 percent lower than the closing price of the stock on Monday.

China Resources Land said the proposed acquisition would increase the exposure of its land bank to tier one and top tier two cities.

“This will also provide an immediate and stable contribution to the company’s ... sales and cash flows,” said Tang Yong, the company’s vice chairman, adding this was the ninth asset injection from the parent and showed continued support from the group. ($1 = 7.7506 Hong Kong dollars) ($1 = 6.1725 Chinese yuan renminbi) (Reporting by Clare Jim)

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