Taiwan Cement Company (TCC) is to offer one rights share for every two existing shares at a price of HK$2.10, a 27% discount to its last traded price and a 19.9% discount to the theoretical ex-rights price.
Credit Suisse and Standard Chartered are joint underwriters alongside parent company TCC International, which has committed to take up its rights to 55.5% of the new shares and underwrite another 16.5%. Credit Suisse and StanChart will underwrite the remaining 28%.
Proceeds will go towards repaying debt taken on to finance the acquisition of Chinese cement and clinker plants, TCC said, without giving any further details of its borrowings.
BNP Paribas, its financial adviser on the acquisition, is arranging a syndicated loan worth CNY1.55bn (US$227m) to provide capital expenditure and working capital for three mainland subsidiaries: Chongqing Changxing Cement, Guizhou Anshun Changxing Cement and Guangan Changxing Cement.
TCC sealed the acquisition in April in a deal worth HK$3.8bn. The target company, Upper Value Investments, is a unit of London and Hong Kong-listed Prosperity Minerals.