Ying Li International Real Estate, the China-based property developer listed on the Singapore Exchange, is seeking the approval of shareholders to bring in CEL, the asset management arm of the China Everbright Group, as its strategic and second largest shareholder.
Ying Li plans to issue new shares and perpetual convertible securities to Everbright Hero Holdings Limited (EHHL) for a total of $284 million. EHHL is an indirect wholly-owned subsidiary of CEL.
Ying Li will use the funds to accelerate development of existing projects and finance new projects.
The transaction will be completed in two phases. Phase A involves the issuance and allotment of 381 million new shares at $0.260 per share to raise $99 million. EHHL will own 14.9% of the enlarged share capital of the group after completing Phase A and become the second largest shareholder of Ying Li, after Executive Chairman and CEO Fang Ming. Phase B involves the issuance of perpetual convertible securities in two tranches – $165 million (Tranche 1) and $20 million (Tranche 2).
China Everbright Group is a state-owned enterprise with total assets exceeding RMB2.6 trillion ($524 billion) at the end of 2013.
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