China MeiDong Auto drops most in 6 years on discounted share sale, bond issue

China MeiDong Auto Holdings

06/01/2022 02:24

** Shares of China MeiDong Auto Holdings Ltd  1268.HK  drop
13.2% to HK$34.15, biggest daily pct drop since January 2016,
after it plans to raise HK$3.53 bln ($452.78 mln) from bonds
issue and share sale for business expansion and acquisitions
    ** Stock set for the second session of losses; top decliner
in Hang Seng Composite Index  .HSCI  and the sixth biggest on
the Hong Kong bourse 
    ** Guangdong, China-based automobile dealer proposes to
issue HK$2.75 bln convertible bonds due 2027, which are
convertible into 58.82 mln new shares at an initial conversion
price of HK$46.75 each  urn:newsml:reuters.com:*:nFWN2TL19X
    ** Co has also agreed to sell 22.5 mln new shares to major
shareholder Apex Sail Ltd in a top-up placement, raising
HK$779.2 mln
    ** The new shares will be issued at HK$34.63 each, or 12%
discount to Wednesday's close
    ** Hang Seng Commerce & Industry Index  .HSNC  rises 1.1%,
Hang Seng Composite Index  .HSCI  gains 0.1% and Hang Seng Index
 .HSI  climbs 0.3%



($1 = 7.7962 Hong Kong dollars)

 (Reporting by Donny Kwok)
 ((donny.kwok@thomsonreuters.com))