China Agri-Industries plans rights issue

China Agri-Industries, an agribusiness and food processing company, is planning to raise up to HK$4.49 billion $579 million from a rights issue. It will use the money to pay for the possible redemption of a convertible bond and as general working capital.

The company, which is a member of the Cofco Group, processes and sells oilseeds, biochemical and biofuel, rice, wheat and brewing materials. Cofco is the biggest supplier of diversified products and services in the agricultural products and food industry in China.

Up to 57.9% of the offering will be bought by its parent company, Cofco HK, which will also underwrite the rest of...