<article>Singapore-listed <a style="color: #000080;" href="http://www.chinafisherygroup.com/" target="_blank">China Fishery Group</a> plans to raise up to $296.5 million through a rights issue. The global-integrated industrial fishing company will use the proceeds to redeem a set of bonds issued by its Peruvian subsidiary <a style="color: #000080;" href="http://www.copeinca.com/index.html" target="_blank">Copeinca</a>.</article>

Singapore-listed <a style="color: #000080;" href="http://www.chinafisherygroup.com/" target="_blank">China Fishery Group</a> plans to raise up to $296.5 million through a rights issue. The global-integrated industrial fishing company will use the proceeds to redeem a set of bonds issued by its Peruvian subsidiary <a style="color: #000080;" href="http://www.copeinca.com/index.html" target="_blank">Copeinca</a>.
China Fishery had completed the acquisition of Copeinca in March last year.
The company, in a disclosure to the local exchange, said it plans to issue up to 1.7 billion new ordinary shares on the basis of four rights shares, for every five existing ordinary shares.
The rights shares will be priced at S$0.173 each , which represents a discount of approximately 33.5 per cent to the closing price of S$0.260 per share on the Singapore Stock Exchange as at 9 February 2015, the last trading day immediately before the announcement.
The company’s parent &#8211; <a style="color: #000080;" href="http://www.paresourcesdevelopment.com/" target="_blank">Pacific Andes Resources Development Limited</a> &#8211; and shareholders representing a total shareholding of 70.5 per cent have said they will support the rights issue and subscribe for their full entitlement of S$199.7 million (approximately $147.9 million).
“We remain committed to the early redemption of the Copeinca Notes, which are due in 2017. It is an important step in our objective of reducing borrowings and strengthening the balance sheet. We have recently announced an improvement in our net-debt-to-equity from 89.6 per cent to 77.9 per cent over the first quarter of financial year 2015. The early redemption of the Copeinca Notes will deliver further reduction in gearing and interest expense,” said Ng Joo Siang, group managing director, in a statement.
China Fishery is also one of the world’s leading producers of fish-meal and fish oil through its processing plants, located strategically along Peru’s coastal areas.
The company has also disclosed that the terms of the Rights Issue, were not unanimously approved by the Board.  It said that two of its eight directors &#8211; Tse Man Bun (the lead independent director) and Patrick Thomas Siewert (a non-executive director) had dissented.
Tse had wanted a  smaller discount to price to be adopted, while Siewert was of the view that the current terms of the Rights Issue would be disadvantageous to the minority shareholders.

China Fishery Group plans to raise up to $296.5 million through a rights issue, to redeem a set of bonds issued by its Peruvian subsidiary Copeinca.


Singapore's China Fishery to raise $296.5m via rights issue

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Singapore's China Fishery to raise $296.5m via rights issue

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