Dec 14, 2012 - Wind farm developer and operator China Longyuan Power Group Corp (HKG:0916) today said it would place new H Shares, seeking about HKD 2.9 billion (USD 374m/EUR 285m) in gross proceeds to fund wind projects.
The H shares are those listed on the Hong Kong Stock Exchange.
The company first announced plans to issue as many as 1.36 billion shares to finance its onshore and offshore wind power projects in May.
Today, China Longyuan said it had agreed with UBS (VTX:UBSN) and Morgan Stanley (NYSE:MS), acting as placing agents, to place 572.1 million H Shares, or 21.1% of the existing number of its H Shares in issue and 17.1% after the issue wraps up. The placing price is set at HKD 5.08 per share, an 8.1% discount to the closing price of the company's H shares on December 13. If the shares are fully placed, the company will raise gross proceeds of about HKD 2.9 billion, it said.
China Longyuan plans to use half of the raised amount for onshore wind power projects in China. Another 20% will go for domestic offshore wind projects, while 15% are to be used for investing in foreign wind and solar power projects. About 10% have been earmarked for replenishing working capital, while 5% are to be spend on solar projects in China.
The placing is expected to close on December 21. China Longyuan cautioned that completion was subject to certain conditions precedent.
The shares will be placed to more than six independent investors, none of whom will become a substantial shareholder, the company said.
(HKD 1.0 = USD 0.129/EUR 0.098)
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