May 28 (Bloomberg) -- First Pacific Co., controlled by billionaire Anthoni Salim, fell to the lowest level in three weeks in Hong Kong trading after a plan to offer as much as HK$3.9 billion ($502 million) of rights shares.
The company, whose businesses include telecommunications, infrastructure and food products, dropped 3 percent to HK$11.16 as of 10:01 a.m., poised for the lowest closing price since May 7. First Pacific said it will offer existing investors the right to buy one new share at HK$8.10 for every eight held. That’s 30 percent cheaper than the closing price yesterday.
Funds raised will be used to strengthen the company’s balance sheet, to finance acquisitions and for general corporate purposes, First Pacific said yesterday. The Hong Kong-based company plans to invest in infrastructure in Vietnam, Thailand and Myanmar, Chief Executive Officer Manuel Pangilinan said in a Bloomberg Television interview in March.
First Pacific said its controlling stakeholder has committed to subscribe for 213.4 million of the maximum 491 million rights shares it plans to offer.
The company had net debt of $2.1 billion as of December, compared with $1.8 billion a year earlier, according to data compiled by Bloomberg. It had $2.2 billion in cash and near-cash items at the end of last year, rising from $1.9 billion in 2011, the data show.
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