Sino-Ocean Raises $808 Million From China Life, Nan Fung GroupBloomberg News
Sino-Ocean Land Holdings Ltd., a real estate developer in China, said it will raise $808 million by selling new shares to China Life Insurance Co. and Nan Fung Group to finance new property projects.
China Life will subscribe for 635.9 million shares and Nan Fung for 686.6 million shares, both at HK$4.74 each, Beijing-based Sino-Ocean said in a statement to the Hong Kong Stock Exchange yesterday. The price is at a 1.7 percent premium to the Hong Kong closing price of HK$4.66 yesterday.
The sale boosts China Life’s stake in the company to 29 percent from 24.7 percent, according to the filing. Under Hong Kong rules, the Beiing-based insurer must make a buyout offer once its holding reaches 30 percent. Nan Fung’s stake rises to 21 percent from 14 percent. China Life and Nan Fung won’t make a takeover offer, Sino-Ocean said in the statement.
As part of the transaction, Sino-Ocean Land said it will pay Nan Fung $314 million for a 20 percent stake in a commercial property project in Beijing’s Chaoyang district and a 10 percent stake in a residential and retail complex in Dalian, giving Sino-Ocean full control of both projects.
JPMorgan acted as financial adviser to Sino-Ocean.
— With assistance by Daryl Loo