TCC International plans US$297m rights issue, Taiwan

TCC International plans US$297m rights issue, Taiwan
Published: 18 May 2010

Cement producer and distributor TCC International said it planned to raise HK$2.307bn (US$297.3m) by way of a rights issue, raising capital to repay debt financing in a bid to enhance its financial position.

The company said it would issue 1.098 million rights shares in the proportion of one rights share for every two shares held at HK$2.10 each, a 27.1 percent discount to the previous close.

The shares closed at HK$2.88 last Friday prior to a trading suspension on Monday. Trading in the shares will resume on Tuesday.

Net proceeds will be used to repay the debt financing incurred when the company acquired clinker and cement production assets in China, which was completed in April, it said.