Hainan Zhuxin Investment (600515) announced that it will issue 127 million shares to Hainan International Tourism Island, which is under the HNA Group, at a per-share price of 6.21 yuan with the hope of raising 790 million yuan, reports Oriental Morning Post, citing the company’s announcement.
The effort is intended to fund the repayment of bank loans and supplement working capital.
According to an earlier report, HNA Property, another subsidiary under HNA Group, injected capital into Zhuxin Investment’s share controller, Tianjin Datong Investment, in August 2009. HNA Property pledged Tiangjin Datong Investment would inject 500 million worth of high-quality assets into Zhuxin Investment, and the injected assets would contribute annual net profits of 60 million yuan to the listed company over a two-year period. HNA Property and Tianjin Datong Investment were slated to start restructuring Zhuxin Investment within two years after 2009. In addition, HNA Property promised to help restructure Zhuxin Investment’s debt.
However, neither HNA Property nor Tianjin Datong Investment has injected any assets into Zhuxin Investment since August 2009. Zhuxin Investment held a shareholder conference in July and expressed that it hopes to put off the restructuring for one year. However, medium and small shareholders did not approve. Zhuxin Investment is replacing the rejected asset injection plan with this latest placement plan, the source said.
Hainan International Tourism Island was founded on October 12 2010, with registered capital of 4.5 billion yuan. It was involved in the investment and administration of commercial, hotel and golf course, and tourism project development.
Hainan International Tourism Island will hold a 30.09-percent stake in Zhuxin Investment, while Tianjin Datong Investment will hold 39.72 million shares of Zhuxin Investment, accounting for 9.4 percent of total capital.


SOURCE: capitalvue.com
Editorial Message 
This site contains materials from other clearly stated media sources for the purpose of discussion stimulation and content enrichment among our members only. 

whatsonsanya.com does not necessarily endorse their views or the accuracy of their content. For copyright infringement issues please contact editor@whatsonsanya.com