Chinese property developer Kaisa Group announced plans on Friday to raise up to HK$2.73 billion ($351.40 million) through a discounted rights share issue to partially fund a $2 billion acquisition of a real-estate project.
Shenzhen-based Kaisa had said a day earlier it will buy a mixed-use property development covering a total gross floor area of 201,601 square meters in Beijing for 13 billion yuan ($1.99 billion).
The number of rights shares to be issued could total as much as 925 million, representing 12.5% of the enlarged shares, it said. Shares of Kaisa fell 14% in early trading on Friday to HK$3.39.
Chairman Kwok Ying Shing and his affiliates, who currently hold a 39% stake, will fully subscribe to the rights issue, according to the filing, and could, under some conditions, increase their stake to 40.5% by subscribing to additional shares.
Read more at Reuters
