Bank Of Chongqing Co.Ltd(601963) convertible bond issuance application was approved by China Securities Regulatory Commission recently. As its important shareholder, Chongqing Road & Bridge Co.Ltd(600106) decided to exercise the preemptive right to participate in the subscription of “re issuing convertible bonds”. According to the calculation, if Bank Of Chongqing Co.Ltd(601963) is issued in full at the price of 13 billion yuan, it is estimated that the company can give priority to the placement of about 1.175 billion yuan.
It is reported that Chongqing Road & Bridge Co.Ltd(600106) currently holds Bank Of Chongqing Co.Ltd(601963) about 171 million restricted shares, accounting for 4.93% of its total share capital. According to the relevant issuance plan disclosed in Bank Of Chongqing Co.Ltd(601963) disclosure, only the A-share shareholders of the “refinanced convertible bonds” enjoy the priority placement right. Therefore, the proportion of the company’s preferred placement is that the number of Bank Of Chongqing Co.Ltd(601963) shares held by the company accounts for about 9.04% of its A-share shares. However, the amount of the company’s final priority placement will be subject to the formal approval documents and issuance plan of the CSRC.
In addition, as the company is a shareholder of Bank Of Chongqing Co.Ltd(601963) holding less than 5%, the “refinanced convertible bonds” of this priority placement will be sold indefinitely.
Chongqing Road & Bridge Co.Ltd(600106) said the move could improve the efficiency of the company’s funds. The company will exercise the preemptive placement right to participate in the subscription of “refinanced convertible bonds” and sell them at an appropriate time to realize income. (Wang Yi)
