China Infrastructure Machinery Holdings Ltd. said on Thursday it would issue US$287 million worth of convertible bonds and US$101 million new shares, raising capital to fund expansion of production capacity.

China Infrastructure said the net proceeds totalled about HK$2.96 billion ($379 million) and would be used to expand its production capacity for agricultural and infrastructure machinery, upgrade its research and development capabilities and as general working capital.

Its parent, China Longgong Group Holdings Ltd., has agreed to subscribe 52 million new shares from the company at HK$15.15 per share and in turn, the parent would sell 104 million existing shares to institutional investors at the same price.

After the share subscription and placement, China Longgong's interest in the company would fall to 52.28 percent from 59.91 percent, it said.

Trading in the shares of the company is expected to resume on Thursday after being suspended from Tuesday, pending the bond and share issue statement.

Source:佚名