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 a $228 million placement in late June that was conditionally allocated subject to an approval from existing shareholders. However, just before the extraordinary shareholders meeting in early July, the company announced it lacked the land...

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