Mongolia Investment to Buy Control of Mapper for HK$1.5 Billion
Mongolia Investment Group Ltd. (402), a water-services and mining company, said it will buy effective control of a Chinese digital-mapping provider for HK$1.5 billion ($193 million) more than a year after first announcing the deal.
The company will fund the transaction with HK$600 million in cash, raised through the private sale of 2.4 billion new shares at 25 Hong Kong cents each, according to Mongolia Investment’s statement to the Hong Kong stock exchange yesterday. It will also issue HK$900 million of zero-coupon five-year convertible notes with a conversion price of 25 H.K. cents a share.
Mongolia Investment initially announced the purchase of Sinbo Investment Ltd. in December 2011. It changed the announced structure at least once, according to earlier filings. Mongolia Investment’s stock, which had been suspended since April 9, will resume trading in Hong Kong today.
The target company owns Beijing Peace Map Information, which has “structural agreements” that give it control over the operations of Peace Map Group, a geographic information services company, without having an equity stake, according to the filing. Chinese law restricts foreign ownership of surveying and mapping companies, the company said.
To contact the editor responsible for this story: Hwee Ann Tan at email@example.com