20000404

Central China to issue 300 mln new shrs

HONG KONG: Central China Enterprises Ltd said on Monday it would issue 300 million new shares at HK$0.20 each to raise HK$58 million for expanding into high-technology business.

The investment holding company said in a statement it would issue 120 million new shares to Joint Tech Properties Ltd, a unit of China Sciences Group (Holding) Corp which is controlled by the China Academy of Sciences.

The remaining 180 million new shares would be issued to Chamber Spirit Ltd, which is controlled by Worthope Technology Group Ltd, it said.

The issue price represented a discount of 74.03 percent to the closing price of HK$0.77 per share on the Hong Kong stock exchange on March 27. Central China Enterprises shares were suspended on March 28.

Shares of Central China Enterprises were down 15.58 percent at HK$0.65 per share on Monday morning.

The 120 million shares represented 6.22 percent of the company existing issued share capital and 5.38 percent of its enlarged issued share capital, while the 180 million shares represented 9.33 percent of its existing issued share capital and 8.07 percent of the enlarged issued share capital.

The company said it would use the net proceeds to diversify its business into telecommunications and high technology projects, including electronic commerce and medical health and bio-technology-related businesses in China, and as general working capital.

Central China Enterprises is an investment holding company, while its subsidiaries are engaged in the provision of automobile repair and maintenance services and investment in infrastructure projects in China.-Reuters