Hong Kong: China Merchants Holdings International, the largest port operator in China, is issuing mandatory convertible securities worth up to $2bn to repay debt and fund construction of new terminals.
The company will sell between 505.4m to 509.8m units of mandatory convertible securities to shareholders, it said in a statement to the Hong Kong stock exchange yesterday. The company will issue one security for every five shares held by qualifying shareholders, it said.
China Merchants Holdings said it plans to use 55 percent of the net proceeds for debt repayment, 40 percent to fund ports and related construction, and 5 percent for general working capital. [01/04/14]