Hong Kong’s CTF Services to issue US$100 million in convertible bonds
CTF Services, a subsidiary of Chow Tai Fook Enterprises, plans to raise HK$780 million (approximately US$100 million) through the issuance of convertible bonds to strengthen its working capital and reduce debt. The bonds will have an initial conversion price set at HK$8.043 per share, representing a 5% premium over the company's recent stock price, and will account for about 2.37% of total share capital upon conversion.
The funds raised are expected to net HK$769 million, which CTF Services intends to use for replenishing working capital and servicing existing debts. The bonds will be listed on the Vienna Stock Exchange, with plans for new shares to be listed on the Hong Kong stock exchange, facilitated by UBS and HSBC as book runners. Recently, the company underwent a rebranding from NWS Holdings, reflecting a strategic shift in ownership and focus towards high-growth sectors such as logistics and insurance.
As part of its restructuring efforts, CTF Services has been divesting noncore assets, including potential plans to sell around US$2 billion worth of toll roads in mainland China, with discussions underway with state-owned Yuexiu Group. This approach aligns with the Cheng family's strategy to concentrate on more lucrative investments, ensuring the company's future growth and stability.
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CTF Services, a subsidiary of Chow Tai Fook Enterprises, plans to raise HK$780 million (approximately US$100 million) through the issuance of convertible bonds to strengthen its working capital and reduce debt. The bonds will have an initial conversion price set at HK$8.043 per share, representing a 5% premium over the company's recent stock price, and will account for about 2.37% of total share capital upon conversion.
The funds raised are expected to net HK$769 million, which CTF Services intends to use for replenishing working capital and servicing existing debts. The bonds will be listed on the Vienna Stock Exchange, with plans for new shares to be listed on the Hong Kong stock exchange, facilitated by UBS and HSBC as book runners. Recently, the company underwent a rebranding from NWS Holdings, reflecting a strategic shift in ownership and focus towards high-growth sectors such as logistics and insurance.
As part of its restructuring efforts, CTF Services has been divesting noncore assets, including potential plans to sell around US$2 billion worth of toll roads in mainland China, with discussions underway with state-owned Yuexiu Group. This approach aligns with the Cheng family's strategy to concentrate on more lucrative investments, ensuring the company's future growth and stability.
via SCMP Full Text Feed
