Tourism Holdings Ltd announced an $80 million capital-raising yesterday, $30 million from a placement to Chinese Government-controlled company HB Holdings Ltd and the balance in a 1:9 rights offer.
The placement, made yesterday at $4.02/share, increased HB Holdings’ stake in Tourism Holdings from 11.14% to 16.9%.
HB Holdings is a subsidiary of Hong Kong-listed Chinese Government-controlled company CITIC Ltd, through private equity arm CITIC Capital Partners LP’s International Tourism Fund.
The 1:9 rights offer is at $3.40/share.
Tourism Holdings chair Rob Campbell said Citic’s tourism fund was a strong supporting shareholder. This investment would support the New Zealand company’s global growth and open up the potential of the China market.
CITIC Capital Holdings vice-chairman Dr Guorong Qian will join the Tourism Holdings board.
CITIC Ltd, still 58% owned by the Chinese Government but listed in Hong Kong since 2014, is China’s largest conglomerate, with total assets of $NZ1478 billion at the end of last year. Its main interests have been in financial services, resources & energy, manufacturing, engineering contracting and real estate.
The rights offer will open on 4 July and close on 16 July. If a shortfall bookbuild is needed, that will occur on 18 July.
Attribution: Tourism Holdings release, Citic.