Ying Li

Ying Li: Yesterday at the company's EGM, shareholders approved to the issue of new shares and convertible securities to Everbright Hero Holdings (EHH), the indirect wholly-owned subsidiary of China Everbright (CEL). The rope-in of China Everbright will raise an aggregate $284m for Ying Li, that will be used to accelerate development of its existing projects and finance new ones. Recall, the deal involves the issue of: i) 381m new Ying Li shares at $0.26 each, and ii) $185m worth of perpetual convertible securities (initial coupon of 8.75% and conversion price of $0.318/share). Post share issue, EHH will emerge as the second largest shareholder with 14.9% of enlarged share capital. Accordingly, Ying Li’s net gearing is expected to improve substantially from 61% to ~15%. Meanwhile, both parties have agreed to introduce pipeline property projects for joint development. CEL will also provide Ying Li with the necessary resources and business networks to participate in market consolidation opportunities and to undertake strategic acquisitions of prime location projects in the first-tier and leading second-tier cities in China.