Capital Estate Announces Subscribing 8 Billion New Shares at Consideration of HK$200 Million by Fullkeen Holding; 54.40% Stake in Capital Estate by Fullkeen Related Shareholders upon Completion.Hong Kong Hong Kong (hŏng kŏng), Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov. , June June: see month. 22, 2009 - (ACN ACN Accenture (stock symbol) ACN Accenture ACN Australian Company Number ACN Automatic Collision Notification (US DOT) ACN Acetonitrile ACN Anglican Communion Network Newswire) - Capital Estate Limited ("Capital Estate"/"The Company")(SEHK SEHK See: Stock Exchange of Hong Kong : 193) is pleased to announce that it entered into a subscription agreement with Fullkeen Holdings Limited ("Fullkeen"), a company beneficially owned as to 70% by Mr. Sio Tak Hong. Fullkeenagreed to subscribe 8 billion new shares at HK$0.025 per subscription share amounting to HK$200 million, representing 37.6% of total outstanding shares upon completion of subscription. Mr. Sio then will become the largest shareholder of Capital Estate. The shareholding of Mr. Chu Nin Yiu, Stephen, Executive Chairman of Capital Estate, will be reduced from 25.1% to 15.7%. Completion of the subscription agreement is conditional upon the independent shareholders approving by way of poll at the Extraordinary General Meeting on 15 July 2009. The net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). from the subscription amounted to approximately HK$198.7 million (after deducting estimated expenses relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the subscription), of which HK$172.1 million will be used for settling anoutstanding balance payable to the Hotel Fortuna vendors in relation to the Hotel Fortuna acquisition and as to approximately HK$26.6 million for general working capital purposes. Executive Chairman of Capital Estate Limited, Mr. Chu Nin Yiu, Stephen said, "The subscription of new shares has a positive effect on the Company. It can strengthen the Company's capital base and improve its gearing ratio Gearing Ratio A general term describing a financial ratio that compares some form of owner's equity (or capital) to borrowed funds. Gearing is a measure of financial leverage, demonstrating the degree to which a firm's activities are funded by owner's funds versus creditor's funds. on the one hand. On the other hand, the subscription can remove the uncertainty over the Company's financial position to pay the majority of the outstanding remaining balance under the Hotel Fortuna acquisition and to save the interest expense for the majority of the remaining outstanding balance. In addition, the Board believes that the strengthening of the Grou's financial position would afford the Group more flexibility in seeking new investment opportunities." Mr. Sio Tak Hong stated, "Subscribing the new shares and becoming the largest shareholder of Capital Estate, is my vote ofconfidence in the business of Capital Estate. I am optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op that Capital Estate shall be able to grasp every opportunity that comes along in the future to increase shareholders' value." About Capital Estate Limited Capital Estate Limited is a Hong Kong listed property and investment holding company. It is principally engaged in property rental, financial investment, property development and sales and hotel operation. Visit www.capitalestate.com.hk. Source: Capital Estate Limited Contact: JOVIAN Financial Communications Ltd Angel Y Y Yeung Tel：+852-2581-0168 Fax: +852-2854 2012 Email: angel@joviancomm.com Copyright 2009 ACN Newswire. All rights reserved. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion