Provide Necessary Financial Support on the Strategic Development of Dalian Port
HONG KONG, Jan 12, 2016 - (ACN Newswire) - Dalian Port (PDA) Company Limited ("Dalian Port" or the "Company", H Share stock code: 2880; A Share stock code: 601880), the largest comprehensive port operator in the Northeastern China, today announced that the Company entered into the Subscription Agreement with the Sole Placing Agent and the First Tranche Investor, China Merchants Holdings (International) Company Limited ("CMHI"; H share stock code:144), with respect to the First Tranche Placing for an aggregate of 1,180,320,000 Placing Shares at the price of HK$3.67 per First Tranche Placing Share. GF Capital (Hong Kong) Limited has agreed to act as the sole financial adviser, and GF Securities (Hong Kong) Brokerage Limited as the sole placing agent of the Placing.
The First Tranche Placing Shares represent 80% of all the 1,475,400,000 Placing Shares. As at the date of the announcement and upon completion of the First Tranche Placing but before completion of any subsequent tranche placing, CMHI will hold 21.05% of the total issued share capital of the Company, therefore will become a substantial shareholder of the company, with Lock-up Period of twelve months. Focusing on port and port-related businesses in Hong Kong and the PRC, CMHI has established a comprehensive port network in the major coastal regions in the PRC, covering areas in the Pearl River Delta, the Yangtze River Delta, the Bohai Economic Zone, the Xiamen Bay Economic Zone, and the Southwest region, which is also involved in strategic investments and owned operating rights across the coastal hub ports in Hong Kong, Shenzhen, Ningbo, Shanghai, Qingdao, Tianjin, Xiamen Bay and Zhanjiang of the PRC.
The gross and net proceeds from the First Tranche Placing and the net proceeds per First Tranche Placing Share amounted to approximately HK$4,331.8 million, HK$4,273.2 million and HK$3.62 per Placing Share respectively. The net proceeds from the First Tranche Placing are intended to be used as to approximately 25% for developing the oil business of the Company, approximately 35% for coping with the needs of investment in, or optimization and integration of domestic and foreign ports so as to realize the "One belt, One road" strategy; approximately 10% for establishing the "Internet + Port" system of the Company so as to enhance the intelligence level of the port operation management platform of the Company; approximately 20% for constructing the logistics facilities for other professional ports of the Company; and approximately 10% for replenishing the working capital of the Company after deducting the commission and expenses relating to the Placing.
Mr. Hui Kai, Chairman of Dalian Port (PDA) Company Limited remarked, "As the best financing method under overall consideration, issuing new H shares will provide necessary financial support on the strategic development of Dalian Port. Through private placing, the Company expects to introduce strategic investors with significant influence on development, to optimize the ownership structure, strengthen the sustainable development ability, in favor of the extension of business. In the future, Dalian Port and CMHI will deepen strategic cooperation, further improve the business layout and sustained profitability, to create the greatest benefits for shareholders."
Source: Dalian Port PDA Company Limited
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