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HONG KONG, June 22, 2009 - (ACN Newswire) - Capital Estate Limited ("Capital Estate"/"The Company")(SEHK: 193) is pleased to announce that it entered into a subscription agreement with Fullkeen Holdings Limited ("Fullkeen"), a company beneficially owned as to 70% by Mr. Sio Tak Hong. Fullkeen agreed to subscribe 8 billion new shares at HK$0.025 per subscription share amounting to HK$200 million, representing 37.6% of total outstanding shares upon completion of subscription. Mr. Sio then will become the largest shareholder of Capital Estate. The shareholding of Mr. Chu Nin Yiu, Stephen, Executive Chairman of Capital Estate, will be reduced from 25.1% to 15.7%. Completion of the subscription agreement is conditional upon the independent shareholders approving by way of poll at the Extraordinary General Meeting on 15 July 2009.
The net proceeds from the subscription amounted to approximately HK$198.7 million (after deducting estimated expenses relating to the subscription), of which HK$172.1 million will be used for settling an outstanding balance payable to the Hotel Fortuna vendors in relation to the Hotel Fortuna acquisition and as to approximately HK$26.6 million for general working capital purposes.
Executive Chairman of Capital Estate Limited, Mr. Chu Nin Yiu, Stephen said, "The subscription of new shares has a positive effect on the Company. It can strengthen the Company's capital base and improve its gearing ratio on the one hand. On the other hand, the subscription can remove the uncertainty over the Company's financial position to pay the majority of the outstanding remaining balance under the Hotel Fortuna acquisition and to save the interest expense for the majority of the remaining outstanding balance. In addition, the Board believes that the strengthening of the Grou's financial position would afford the Group more flexibility in seeking new investment opportunities."
Mr. Sio Tak Hong stated, "Subscribing the new shares and becoming the largest shareholder of Capital Estate, is my vote of confidence in the business of Capital Estate. I am optimistic that Capital Estate shall be able to grasp every opportunity that comes along in the future to increase shareholders' value."
Contact:
JOVIAN Financial Communications Ltd
Angel Y Y Yeung
Tel：+852-2581-0168
Fax: +852-2854 2012
Email: angel@joviancomm.com
Topic: Corporate Announcement
Source: Capital Estate Limited
https://www.acnnewswire.com
From the Asia Corporate News Network
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