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HONG KONG, Mar 2, 2015 - (ACN Newswire) - Joy City Property Limited ("Joy City Property" or the "Company", HK Stock Code: 0207) published an announcement as at 27 February 2015 in relation to the proposed Rights Issue offered to existing shareholders.
The Rights Issue would be offered at a price of HK$1.35 per share on the basis of one (1) Rights Share for every two (2) existing Shares, and the deal is expected to be completed by the end of April. The management of the Company decided to raise equity financing through Rights Issue because it will furnish the existing shareholders with priority of participating in the subscription, which will protect the interest of existing shareholders; meanwhile, the new potential investors could also apply for Rights Shares by acquisition of the nil-paid rights of Rights Issue during the subscription period. The interests of both existing shareholders and new investors are well considered in this Rights Issue.
Noteworthily, the Rights Issue is on a non-underwriting basis, which is not common in the market. It is mainly due to the aggregated shareholding currently held by COFCO Corporation, being the substantial shareholder, and GIC, being the related shareholder, is at the high level under the Listing Rules; thus COFCO Corporation could not formally underwrite the Rights Issue. However, COFCO Corporation has entered into an agreement with the Company for the purpose of settling the shortfall via acquiring CPS, which clearly demonstrates COFCO Corporation's strong support and confidence in the future development of the Company. As regard to the issuance of CPS to COFCO Corporation, the price of which is determined in a fair way and in line with that of the Rights Issue, in consideration of the interests of minority shareholders.
The management of the Company stated that, with the completion of asset injection by Joy City last year, the Company has substantially completed the consolidation of the core commercial property of COFCO Corporation. Looking forward to the future, the Company will commit to looking for appropriate investment opportunities focusing on the core business of Joy City and taking the urban complexes of Joy City as the main force, with an aim to build mixed-use complexes consisting of commerce, residence, hotel, office building and department, in order to make Joy City as a "century-old shop" and as a leader in the complex operation industry. The management of the Company and COFCO Corporation are in full of confidence in the future development of Joy City Property.
Contact:
Strategic Financial Relations (China) Limited
Ms Serine Li Tel: (852) 2864 4835 E-mail: serine.li@sprg.com.hk
Ms Ada Leung Tel: (852) 2114 4967 E-mail: ada.leung@sprg.com.hk
Topic: Press release summary
Source: Joy City Property Ltd
Sectors: Daily Finance, Daily News
https://www.acnnewswire.com
From the Asia Corporate News Network
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