11:20 27-MAR-2000
China Online <0383.HK> to issue 1.86 bln warrants
HONG KONG, March 27 (Reuters) - Investment holding firm China Online (Bermuda) Ltd said on Friday it would raise net proceeds of HK$185.67 million by issuing 1.86 billion warrants at HK$0.10 each on the basis of one for every five existing shares held. Each warrant would carry the right allowing holders to subscribe for a new China Online share at HK$0.30 per share during the period from May 8 2000 to May 7 2003, the company said in a statement.
The net proceeds of the issue would be used as general working capital of the company, it added. China Sci-Tech Holdings Ltd <0985.HK>, which has a 33.8 percent interest in the company, is the underwriter of the warrant issue. If the underwritter fully or partially takes up the underwritten warrants, upon full conversion of the warrants, China Sci-Tech would have about 44.9 percent of the enlarged issued share capital of the ccompany.
This, if it happened, would trigger the general offer requirement under the Takeovers Code and China Sci-Tech would fully comply with the Takeovers Code, it said. China Online through its subsidiaries is involved in mobile phone distribution in Hong Kong and investing with strategic partners in distribution networks in mainland China. Its shares rose HK$0.015 or 5.0 percent to HK$0.315 at mid-morning trade on Monday.
((Hong Kong Newsroom +852 2843-6369, Fax +852 2845-0636 hongkong.newsroom@reuters.com)) .
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China Online <0383.HK> to issue 1.86 bln warrants
HONG KONG, March 27 (Reuters) - Investment holding firm China Online (Bermuda) Ltd said on Friday it would raise net proceeds of HK$185.67 million by issuing 1.86 billion warrants at HK$0.10 each on the basis of one for every five existing shares held. Each warrant would carry the right allowing holders to subscribe for a new China Online share at HK$0.30 per share during the period from May 8 2000 to May 7 2003, the company said in a statement.
The net proceeds of the issue would be used as general working capital of the company, it added. China Sci-Tech Holdings Ltd <0985.HK>, which has a 33.8 percent interest in the company, is the underwriter of the warrant issue. If the underwritter fully or partially takes up the underwritten warrants, upon full conversion of the warrants, China Sci-Tech would have about 44.9 percent of the enlarged issued share capital of the ccompany.
This, if it happened, would trigger the general offer requirement under the Takeovers Code and China Sci-Tech would fully comply with the Takeovers Code, it said. China Online through its subsidiaries is involved in mobile phone distribution in Hong Kong and investing with strategic partners in distribution networks in mainland China. Its shares rose HK$0.015 or 5.0 percent to HK$0.315 at mid-morning trade on Monday.
((Hong Kong Newsroom +852 2843-6369, Fax +852 2845-0636 hongkong.newsroom@reuters.com)) .
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