December 15, 2017 / 12:36 AM / a year ago

Sunac China plans $1 bln share sale for working capital

HONG KONG, Dec 15 (Reuters) - Property developer Sunac China Holdings Ltd said on Friday it would sell HK$7.82 billion ($1 billion) worth of new shares to its major shareholder, raising proceeds for general working capital.

The Tianjin-based developer said it planned to sell 251.5 million new shares to Chairman Sun Hongbin’s Sunac International Investment Holdings Ltd at HK$31.1 per share, or an 11.9 percent discount to the stock’s previous close.

Sunac International will buy the new shares on completion of the sale of the same amount of existing shares at the same price to third-party investors. Its stake in the developer will be reduced to 47.8 percent from 50.7 percent on completion of the deal.

The deal came nearly 5 months after the developer raised HK$4 billion in a share placement in July.

In September, Sunac China said it would slow the rate of land purchases to boost profit and slash its debt ratio, after massive acquisitions attracted attention from a government bent on reducing corporate debt. ($1 = 7.8092 Hong Kong dollars) (Reporting by Donny Kwok; Editing by Stephen Coates)

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