Bank of Communications to raise $201.25 million through private placement of H shares
Mar 16, 2012 (Datamonitor Financial Deals Tracker via COMTEX) --
Bank of Communications Co., Ltd., a Chinese banking services company, has entered into an agreement to raise HKD1,552.14 million ($201.25 million) through the issue of 275,690,557 new H shares at a price of HKD5.63 ($0.73) per share in a private placement transaction through an underwritten basis, following the approval from the Board.
In addition, Bank of Communications will issue 5,559,619,881 new H Shares to subscribers in total, including MOF, The Hongkong and Shanghai Banking Corporation Limited (HSBC) and SSF, among others, at a subscription price of HKD5.63 ($0.73) per H Share. The other subscribers for new H Shares include Best Investment Corporation (a wholly-owned subsidiary of CIC International Co., Ltd.), China Life Insurance (Overseas) Company Limited, China Re Asset Management Company Limited and New China Life Insurance Company Ltd.
Bank of Communications will also issue 6,541,810,669 new A shares for subscription to the subscribers, including The Ministry of Finance (MOF), National Council for Social Security Fund (SSF), Shanghai Haiyan Investment Management Company Limited, Yunnan Hongta Group Company Limited, Ping An Asset Management Co., Ltd., China First Automobile Works Group Corporation and China National Tobacco Corp. at a subscription price of CNY4.55 ($0.72) per A share.
The subscription prices of CNY4.55 ($0.72) per new A share and HKD5.63 ($0.73) per subscribed H share and placing share represent 6.57% discount and 9.05% discount to the closing prices of the A shares and the H shares as at March 14 2012, respectively.
Bank of Communications will raise HKD69,329.36 million ($8,932.46 million) through the placement if issue of new A shares and H shares.
CITIC Securities Corporate Finance (HK) Limited is acting as placement agent for the offering. China Everbright Capital Limited is acting as financial advisor to the board of Bank of Communications.
Deal Value (US$ Million) 201.25
Deal Type Private Placement
Deal Status Announced: 2012-03-15
Target (Company) Bank of Communications Co., Ltd.
Acquirer (Company) Undisclosed Investors*
Bank of Communications will use the net proceeds to replenish the core capital of the Bank.
Offer Price ($ per share) 0.73
No. Shares Issued 275690557
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