Ying Li

Ying Li: Proposed to rope in China Everbright (CEL) as a strategic shareholder, raising an aggregate $284m in the process, intended to be used to accelerate development of existing projects and finance new projects. Subjected to shareholders' approval, Ying Li will issue 381m new shares at $0.26/share to Everbright Hero Holdings (EHH), an indirect wholly-owned subsidiary of CEL, as well as an issue of $185m worth of perpetual convertible securities, which can be converted at $0.318/share between the 3-6 year period. Post issue, EHH will emerge as the second largest shareholder with 14.9% of enlarged share capital. Net gearing of Ying Li will improve substantially, from 61% to around 15%. Both parties have entered into a cooperation framework agreement where a pipeline of projects for joint development will be announced once shareholders have given their stamp of approval for the deal. Following that, CEL will provide the necessary resources and undertake strategic acquisitions of prime location projects in the first-tier and leading second-tier cities in China.