Chinese orange grower sells new shares to pay for acquisition

The company raises $50 million in new funds and substantial shareholder Chaoda monetises part of its holdings for a total deal size of $69.7 million.

Asian Citrus Holdings, an operator of orange plantations in China, yesterday completed a top-up placement to raise money for a recently announced acquisition. In connection with the placement, the company's second largest shareholder, fruit and vegetable grower Chaoda Modern Agriculture, took the chance to sell 27 million existing shares, reducing its stake to 22.8% from 28.2%.

Including the Chaoda portion, the deal amounted to HK$541.5 million $69.7 million.

The deal offered the first real chance for Hong Kong investors to buy into Asian Citrus in bulk after it listed on the Hong Kong stock exchange in November last year. The company listed through introduction -- i.e. without any issuance of new shares. However,...

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