Rights issue offers way forward for Franshion Properties
April 16, 2009 | BY
clpstaff &clp articles &China-based Franshion Properties plans to sell shares worth HK$2.72 billion by way of a rights issue.The Hong Kong-listed real estate developer of Sinochem…
China-based Franshion Properties plans to sell shares worth HK$2.72 billion by way of a rights issue.
The Hong Kong-listed real estate developer of Sinochem Corporation is the latest issuer to use the rights issue option, which allows a company to raise funds and avoid fluctuations in interest rates – unlike with bank loans or the sale of debt.
The shares will be sold to raise funds for the recent acquisition of China Jin Mao (Group) from parent Sinochem. The deal completed earlier this year and involved a deferred payment.
A Latham & Watkins corporate team led by partner Cathy Yeung worked closely with Franshion Properties' Beijing-based head of legal Gai Jianggao on the issue.
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