Tonic returns with acquisition-related placement

The $248 million deal, which is part of a backdoor listing of some of China Merchants Group’s real estate assets, is priced at the bottom of the range for a 22.3% discount to the latest close.

Tonic Industries Holdings, the Hong Kong-listed shell company that was bought by China Merchants Property Development last year, has raised HK$1.93 billion $248 million from an accelerated placement.

The money will be used to pay for part of a HK$6.69 billion acquisition of properties from its new parent company that was first announced in April. The placement will also ensure that the free-float is maintained at 25%.

Tonic initially did...

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