The development comes as Franshion Properties is raising HK$4.37 billion ($564 million) by selling 1.6 billion shares at HK$2.73 apiece, a 9.9 per cent discount to its close on Monday, the company said in a Hong Kong exchange filing earlier this week.
Along with GIC, Walter Kwok, the former chairman of Hong Kong developer Sun Hung Kai Properties Ltd, and US private-equity firm Warburg Pincus, as well as New China Life Insurance also bought shares in the placement. New China Life Insurance, which bought about a billion shares has become the second largest shareholder in Franshion Properties China with 9.5 per cent.
The company, bulk of whose business is in mainland China, will use the proceeds from the placement for general working capital, potential investments and refinancing debt.
Morgan Stanley, CCB International Holdings Ltd. and HSBC Holdings Plc are arranging the sale.
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