Friday 29 Mar 2024
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SINGAPORE (Nov 25): Pacific Andes Resources Development is seeking to raise $195.5 million through a rights issue to help its unit China Fishery Group pare debt.

The company will issue 3.83 billion rights shares at 5.1 cents each on the basis of four rights shares for every five ordinary shares held.  

The rights shares are priced at a 52.8% discount to Pacific Andes' closing price of 10.8 cents yesterday and a 38.3% discount to the stock's theoretical ex-rights price of 8.3 cents.

The proceeds will be used to help China Fishery redeem some US$250 million ($320 million) of bonds issued by its Peruvian subsidiary Copeinca.

China Fishery spent more than US$782 million to take over Copeinca last year, giving it control of the biggest anchovy quota-holder in Peru and the world’s third-largest fishmeal producer.

Standard & Poor's has said China Fishery's credit rating could be downgraded if it fails to restructure Copeinca's debt by March next year.

Pacific Andes Resources' controlling shareholder, Pacific Andes International Holdings, will support the cash call by spending $129.9 million to subscribe for its full entitlement. It owns 66.45% of Pacific Andes Resources.

Pacific Andes shares will trade ex-rights from Dec 29. The rights shares will start trading on Jan 28.

The rights issue, which will be put to a vote by shareholders, will be partly underwritten by DBS Bank, Maybank Kim Eng and Standard Chartered.

 

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