Singapore-listed Jardine Cycle & Carriage, that is a subsidiary of Jardine Strategic Holdings, has announced that it would raise $772 million through a rights issue. The company, in a regulatory filing said that it would issue 39.5 million new shares priced at S$26 apiece – on the basis of one rights share for every nine existing ordinary shares.
This pricing marks a discount of close to 27.9 per cent to closing price of $36.06 on June 18.
It has got on board CLSA Singapore Pte Ltd, Morgan Stanley Asia (Singapore) Pte and The Hongkong and Shanghai Banking Corporation Limited, Singapore Branch as the joint underwriters for the rights issue.
In April this year, Jardine Cycle & Carriage had announced that it would pay $615 million (S$842 million) for a 24.9 per cent stake in Thailand’s second largest cement maker Siam City Cement. Siam City Cement, that is listed on the Thailand stock exchange, owns three plants with a total cement production capacity of 14.5 million tonnes per annum. In addition to cement, it also produces concrete and other building materials.
To fund this deal, Jardine Cycle & Carriage had drawn loans – $313 million on a $325 million term loan facility from The Hongkong and Shanghai Banking Corporation Limited, and $313 million on a $325 million term loan facility from the Bank of Tokyo-Mitsubishi UFJ, Ltd.
The company said it would use the proceeds from the rights issue to repay about 82 per cent of the $626 million in term loans, repay certain short-term indebtedness of the group, and for general corporate purposes including making strategic investments and or acquisitions.
Jardine Cycle & Carriage is a member of the Jardine Matheson Group, and it has an interest of just over 50 per cent in Astra, a premier listed Indonesian conglomerate, as well as other motor interests in Southeast Asia. Together with its subsidiaries and associates, JC&C employs around 245,000 people across Indonesia, Malaysia, Singapore, Vietnam and Myanmar.
Its parent firm – Jardine Strategic – will procure the subscription and payment for an aggregate of 29.4 million rights shares representing 74.34 per cent of the rights shares.