Financial News
Written by: Zhang Weilun
2020-11-17 20:10
Last update date: 2020-11-17 20:10
Sun Hung Kai Company (0086) announced that it exercised the put option and required Everbright Securities (6178) to purchase a 30% stake in Sun Hung Kai Financial (SHKFGL) held by Sun Hung Kai.
The CDS will pay part of the consideration with cash of 1.257 billion yuan; and subscribed 90,365 million preferred shares with a total value of 1.156 billion yuan from SHKFGL, and then transferred the preferred shares to Sun Hung Kai to pay the remaining consideration.
The company pointed out that the proceeds will be used for investment, general working capital or dividends.
Sun Hung Kai pointed out that this batch of preferred shares has a dividend of 8.5% and has redeemable and mandatory redemption restrictions.
SHKFGL can redeem 30.121 million preferred shares from Sun Hung Kai on June 1, 2021, June 1, 2022, and June 1, 2023, respectively, which means that 3 points 1 of the preferred shares can be redeemed each time.
At the time of redemption, preferred stock holders can receive 107% of the redeemed preferred stock subscription price in cash.
SHKFGL Group is a wealth management institution with five main business segments, including wealth management, corporate finance and capital markets, institutional business, asset management, investment and financing, serving individual, corporate and institutional clients in Hong Kong, Macau, China and the United Kingdom Provide financial services.
Sun Hung Kai pointed out that the exercise of put options can generate cash inflows to consolidate the company's capital position and strive for business development in other areas.
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