China Culiangwang Beverages Plans To Raise Up To HK$1.06 Billion In Share Sales

   By Prudence Ho and Joanne Chiu 
 

China Culiangwang Beverages Holdings Ltd. (0904.HK) is seeking to raise in a rights issue up to 1.06 billion Hong Kong dollars (US$137 million) in a bid to strengthen its capital and reduce debt.

The Hong Kong-listed company said Friday it plans to sell up to 5.30 billion new shares at a price of HK$0.2 each to its existing shareholders, on the basis of two offer shares for every one share held. The offer price represents a 78% discount to its latest trading price of HK$0.90 Wednesday, it added.

The fundraising comes as a plan by the company to sell its beverage business to a unit of Coca-Cola Co. (KO) for an enterprise value of US$400.5 million, as it seeks to refocus on nonbeverage consumer operations.

China Everbright Securities (HK) Ltd., Oriental Patron Securities Ltd. and SBI China Capital Financial Services Ltd. are underwriters of the deal.

Write to Joanne Chiu at [e-mail]

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