CITIC PAYS PRICE FOR HK ARM'S FOREX GAMBLE

China International Trust and Investment Corp will purchase convertible bonds in Citic Pacific that, when converted, will double its stake in the Hong Kong-based company to about 57 per cent. The bonds are convertible at HK$8 a share, representing a 32 per cent premium to their last close on October 31.

While the deal will dilute existing shareholders, in-cluding Citic Pacific chairman Larry Yung and Power Corp of Canada, it will also see the Chinese government-owned parent take responsibility for currency contracts that Citic Pacific said last month could cost it $2bn and potentially much more.

“Citic Group will . . . assume the liabilities and benefits of the [foreign exchange] contracts,” Citic Pacific said yesterday in a statement to the Hong Kong stock exchange. “As a result, from completion Citic Pacific will no longer bear the economic burden, or enjoy the benefits, of the contracts.” Citic Pacific shareholders will also be asked to approve a “whitewash” waiver allowing Citic Group to increase its stake without making a general offer.

您已閱讀63%(1056字),剩餘37%(622字)包含更多重要資訊,訂閱以繼續探索完整內容,並享受更多專屬服務。
版權聲明:本文版權歸FT中文網所有,未經允許任何單位或個人不得轉載,複製或以任何其他方式使用本文全部或部分,侵權必究。
設置字型大小×
最小
較小
默認
較大
最大
分享×